News | Forex Optimum

News

News

US dollar’s safe-haven currency function is now markedly weakened – Natixis

FXStreet reports that analysts at Natixis seek to determine whether the USD still plays this safe-haven currency role when risk aversion is high nowadays, and what factors could have changed this role. 

“When risk aversion has become high, the dollar has traditionally played a safe-haven currency role, appreciating against the euro. A rise in risk aversion (1998, 2000-2001, 2008-2009, 2012, 2014, 2018-19) has led to an appreciation of the dollar against the euro. The dollar’s safe-haven role stems from the fact that when risk aversion is high (2008, 2012, 2014, 2018-19): Capital flows to the US from OECD countries, particularly from the Eurozone; but capital also flows to the US (the dollar) from emerging countries due to capital outflows.”

“The COVID-19 crisis has not given rise to a lasting appreciation of the dollar against the euro. This can be explained by: An economic reason, concern about the rising US external debt; a political reason, the end of dollar purchases by many countries (China, Russia, OPEC).”

You may also be interested:

14:23 22.10.2021
Silver Price Analysis: XAG/USD sits near multi-week tops, just below mid-$24.00s
Silver caught some fresh bids on Friday and moved back closer to multi-week tops. The set-up remains tilted in favour of bulls and supports prospects for further gains. Any meaningful slide below the $24.00 mark could be seen as a buying opportunity. Silver regained positive traction on the last day of the week and inched back closer to six-week tops during the mid-European session. The white metal was last seen trading just below the mid-$24.00s, up around 0.70% for the day. From a
14:05 22.10.2021
US Dollar Index Price Analysis: The 93.50 area holds the downside… for now
DXY could not sustain Thursday’s bullish attempt to 93.80. Solid contention remains around the mid-93.00s so far. DXY resumes the downside after the recent failed attempt to re-visit the 94.00 neighbourhood (Thursday). Further consolidation is now likely amidst the current price action. However, if sellers manage to drag the index further south of 93.50 then DXY could be poised for a deeper pullback to the 55-day SMA at 93.25 followed by late September lows around 93.00 (September 23
13:57 22.10.2021
Eurozone long-term inflation gauge hits 2% for first time since 2014 – Reuters
According to Reuters, a key market gauge of the long-term inflation gauge in the eurozone hit 2% for the first time since 2014.  "The five-year, five-year breakeven inflation forward has risen from just under 1.30% at the start of the year, driven by recovery from the COVID-19 pandemic and elevated current inflation readings spurred on by supply bottlenecks and high energy prices," Reuters explained. source: Reuters Market reaction This development doesn't seem to
Deposit
options
Trading
platform
download
Bonuses VIP