Dollar Advances On Rising U.S.-China Tensions
The U.S. dollar strengthened against its major rivals in the
early European session on Thursday, as heightened tensions between
the U.S. and China dampened risk sentiment.
Tensions flared up after the Trump administration barred Chinese
airlines from flying into the U.S. from June 16 in retaliation
against Beijing's restrictions on American and foreign
Shortly after the announcement, the Civil Aviation
Administration of China (CAAC) said it would allow once-per-week
flights into a city of their choosing starting on June 8.
All airlines will be allowed to increase the number of
international flights involving China to two per week if no
incoming passengers on their flights test positive for Covid-19 for
3 consecutive weeks.
Investors await weekly jobless claims and the U.S. trade data
due later in the day, as well as the Labor Department's monthly
jobs report on Friday for more direction.
The greenback approached 109.15 versus the yen, its highest
level since April 7. The greenback is seen finding resistance
around the 112.00 level.
The greenback rose to 1.3530 against the loonie, 0.6882 against
the aussie and 0.6404 against the kiwi, from its early lows of
1.3489, 0.6933 and 0.6433, respectively. The next possible
resistance for the greenback is seen around 1.37 against the
loonie, 0.66 against the aussie and 0.62 against the kiwi.
The greenback advanced to a 2-day high of 1.2501 versus the
pound, from a low of 1.2581 hit at 7:30 pm ET. If the greenback
extends rise, 1.22 is possibly seen as its next resistance
The greenback edged higher to 1.1197 versus the euro, after
falling to 1.1238 at 5:45 pm ET. On the upside, 1.10 is possibly
seen as the next resistance for the greenback.
In contrast, the greenback dropped to 0.9605 against the franc,
setting a 2-day low. The greenback is poised to target support
around the 0.94 level.
Looking ahead, Eurozone retail sales for April are due out in
the European session.
The European Central Bank will announce interest rate decision
at 7:45 am ET. The ECB is expected to hold its main refi rate at a
record low zero percent and the deposit rate at -0.50 percent.
In the New York session, U.S. and Canadian trade data for April
as well as weekly jobless claims for the week ended May 30 are
scheduled for release.
Euro vs Yen (FX:EURJPY)
From Oct 2020 to Oct 2020
Euro vs Yen (FX:EURJPY)
From Oct 2019 to Oct 2020