He global dollar rose on Friday, in a day marked by nervousness and uncertainty: on the one hand, the cyber blackout The global crisis that affected banks, airlines and issuers worried investors; and, on the other hand, the expectation for the change of direction that the United States elections keeps the country and the world in suspense.
He dollar index The U.S. dollar —which measures the greenback’s performance against a basket of six major currencies— rose 0.24% to 104.39 units, accumulating a weekly advance of 0.3%. It thus recorded its second consecutive daily advance, closing its first week on the rise in the last three, rebounding thanks to recent U.S. economic data and concerns about the technological blackout.
The truth is that the risk appetite declined this week, punishing technology stocks in particular, while expectations of a rate cut by the Federal Reserve in September weighed on the dollar, especially against low-interest currencies such as the yen and Swiss franc.
The huge difference between the United States rates and Japan and even, Swiss has created an opportunity for investors to sell those currencies to fund higher-yield asset purchases, such as dollar, or supercharged tech stocks or cryptocurrencies.
He and in, However, it was appreciated during the week against the dollar, amid suspicions of official purchases last week by Japanese authorities and of another alleged intervention by the Bank of Japan (BOJ) earlier this week. Against the yen, the dollar strengthened 0.07% to 157.48 units in the session, swinging between gains and losses on the day after data showed the Inflation in Japan recovered for the second month in a row.
Meanwhile, the euro fell 0.16% to $1.0878, ending a two-week winning streak, a day after the European Central Bank left interest rates unchanged, as the market expected, and offered no clear guidance on when it might cut borrowing costs.
Uncertainty and nervousness in the markets
A failure in the antivirus update Azure, cloud infrastructure of Microsoft, led to a global cyber blackout which affected banks, airports, hospitals and broadcasting companies, and caused concern in the markets about the effect that such an event could have.
In this sense, although the Actions Technology stocks plummeted by up to 20%, volatility in the currency market remained contained.
On the other hand, operators remain expectant about the future of the American electoral scenario, given the confirmation of the Republican candidacy. Donald Trump, and the growing possibility that the president Joe Biden give up the race for re-election and step aside from the Democratic nomination.
Source: Ambito
