The Dollar’s downturn came as a result of the lack of significant macro data at the start of the week that would have had a significant impact on the Dollar’s trading.
Monday was a day of weakness for the Dollar as investors began to focus on currencies such as the Yuan, allowing the Dollar to take some of its losses.
After a first half of the year where the dollar had become the main player for printers and their high-risk investments, this role seems to be shifting into a tense calm for the dollar.
The dollar regains a tense equilibrium
The dollar found some pull on Tuesday. Investors decided to rely on solid economic data to open up and increase jobs in the service sector, given the risk of increased cases of the coronavirus. Thus maintaining investor confidence in an economic recovery after the COVID-19 pandemic.
Despite its fall against the Chinese Yuan on Monday, the dollar remained stable in the Forex market.
It also held on to a two-week low against a basket of riskier currencies, following the mood of Bitcoin Billionaire, and remained tense for the dollar.
However, with the expectation of a second wave of coronavirus infections in the U.S., and this promising an intensified shutdown of the country’s major U.S. states, the currency is expected to have a tense outlook.
Cross of death for the dollar
The dollar has seen a lot of behavior since the Covid-19 became the global news and the highlight of the day in the currency markets.
In addition, political situations in the United States have also greatly affected the behavior of the U.S. currency in the Forex market. This week was no exception.
The index, which measures the dollar against a basket of currencies, has not had a „death cross“ in many months. And this week’s start was remarkable for owning this event.
The cross of death is this technical bearish figure that occurs when the 50-day moving average crosses below the 200-day moving average. Which has come about after a period of dollar weakness.
It last occurred for the dollar index in December 2019, after which it returned more than 3% in its index.
Tense calm for the dollar in the Forex market, despite the recent death cross.
Because of the dollar’s central role in the global financial system, it is important for corporations and investors to measure their performance.
Over the past few years, the currency has withstood a number of factors that analysts believed would lead to its downfall. These include the Federal Reserve’s sharp turnaround and fears of a slowdown in U.S. growth due to the coronavirus.
However, others believe that any dollar weakness will be short-lived.
Since investors‘ expectations always remain positive in the Forex market with the dollar.