Le Stanley White
TOKYO (Reuters) – The dollar traded near multi-month highs against most major currencies on Friday, backed by a wave of optimism as a result of improving U.S. economic data, release coronavirus vaccines, and rising Financial yield.
The euro was ahead of data on German business sentiment data due later in the day, but the outlook for the European common currency has been hampered by locks -regenerated coronavirus cleanup and slow-release vaccines across the European Union.
The greenback has more room to rise against the euro, but its gains against other currencies in the last few weeks have been so rapid that some analysts have warned against the dollar will run higher from normal levels.
“The euro has broken through the 200-day moving average, which is a clear signal that it will continue to move lower,” said Minori Uchida, head of global market research at MUFG Bank in Tokyo.
“The yen is getting strong on some crosses, which will hurt the dollar / yen. Yields have supported the dollar, but this move could start to run out of steam.”
Against the euro, the dollar was traded at $ 1.1776, near its strongest level since November last year.
The dollar bought 109.21 yen, which is near its highest level since June.
The greenback traded at 0.9396 Swiss francs, holding up a 0.5% gain from the previous session.
One thing that was special about the gains was the British pound, which rose to $ 1.3747 after rising 0.4% on Thursday. Upcoming data later Friday that is expected to show a reversal in British retail sales could add further impetus to the pound.
Unemployment claims fell to a low last week and President Joe Biden said he would double his vaccine distribution plan after reaching his previous goal of 100 million 42-day views ahead of schedule, and both support optimism in the dollar.
The dollar index against a basket of six major currencies was at 92.788, near a four-month high.
Traders will look at data on U.S. personal spending due later Friday for more comments on the strength of the U.S. economy.
During European trade Ifo’s study in Germany is expected to show an improvement in industry confidence. But this is unlikely to stop the euro’s slippage, as concerns about the slow spread of EU vaccines and kicking off with a former British member over vaccine exports have become a major issue, traders said. .
Australian and New Zealand dollars bounced back from a big loss earlier in the week.
Both currencies appear to be gaining support because of their relative success in limiting the economic downturn caused by the coronavirus pandemic, analysts said.
(Reporting by Stanley White; Editing by Kenneth Maxwell)