Amid the COVID-19 situation, the US dollar flourished on Friday. The risk appetite of traders hiked up a little by jobs data as well. Even though the wages of the jobs boomed, the reaction in currencies was restrained. The job recovery is still in the process from May and yet the U.S economy only regained one-third of the plunge of 20.787 million job loss happened in April.
The condition of the broader market improved as Asian shares recuperated to a 4-month high overnight followed by the quick pickup in Chinese service sector activity. The US dollar levitated less than 0.1% to 97.289 at 0948 GMT. The strategists of FX at ING have spoken about this.
“In a week characterized by dropping FX volatility, the dollar looks to be re-establishing a gentle bear-trend as equities keep showing complacency to grim contagion news,” they said.
They also added that this also indicates the short-term outlook for risk assets is still a troublesome business but there is still a chance they can see the rise in dollars.
New Zealand dollars edged up 0.1% at 0.6519, the Australian dollar upped to 0.1% at 0.6932 and the Norwegian crown rose at around 0.2% at 9.552 against the U.S dollar. On the other hand, the euro tanked a bit at 1.12295 against the US dollar.
The relations between the US and China is being speculated because of China’s strategy in Hong Kong. The U.S Senate passed legislation recently to penalize any bank doing business with the Chinese officials who would help in bring forth Beijing’s new national security law for Hong Kong.