The euro surged higher than the $1.24 mark to the intra-day maximums and high-yielding currencies, with the Australian dollar amongst them, climbed today as stocks grew, suggesting that investors are again ready for risk after last week’s short sell-off.
The U.S. dollar remained down near the minimum of 16-month versus the Japanese yen as markets stayed cautious about the currency’s prospects in view of a looming trade war.
Recent statement by the U.S. central bank prompted a bullish prospect for the dollar, but in fact it is unlike that, which might mean some structural rebalancing flows, believes Richard Falkenhall of SEB.
The positioning versus the U.S. currency is at the maximum in a year, as CFTC data shows, and given that the dollar has had the steepest weekly fall in a month versus a basket of currencies, a number of investors say it is about to rebound.
The dollar was at $1.2417 versus the euro, a minimum of two and a half weeks, while Jens Weidmann, a person, who might take the position of the ECB’s president, recently proposed some help. He claimed that market forecasts of a rate raising somewhere in the middle of 2019 were not totally unrealistic, though there is a view expecting rate to go up by the first quarter of next year.