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The United States dollar is down against most major currencies. Speculators are increasing net short positions on the United States dollar. Better-than-expected economic data arrived from China. Moreover, it painted a less gloomy picture of the new coronavirus’ economic fallout than markets were fearing. Thus, on Tuesday, much to the enjoyment of the Australian dollar and sterling, the dollar fell. March exports of China fell by 6.6% from an earlier year. It is Compared with a 9.5% drop, compared to a 14% drop and imports by less than 1%, anticipated by economists. Moreover, in the United States, daily fatalities also fell sharply. Thus, states began to plan to re-open their economies. It left traders to abandon the safety net of the most liquid currency and to turn more risky currencies. The most liquid currency is the dollar. Against the greenback, the Australian dollar rose to a more than one-month high of 6.432 and was last up 0.5%. Dollar and Others Touching it’s highest point since March 13, $1.2575, the Sterling went up by the same magnitude. For the past weeks, the pound was closely linked to the performance of the equity market. Against the dollar, the euro inched by 0.2% to $1.0932. Moreover, against the major economies, the only currency the dollar was down against was the Japanese yen. Thus, against the greenback, it rose by 0.1% to 107.69 yen. Lee Hardman is a currency analyst at MUFG. He said that there is ongoing improvement in global investor risk sentiment in the near-term. Moreover, it combines with the Federal Reserve’s aggressive policy response. Thus, it is beginning to weigh down more on the United States dollar. Last week the mood in the forex markets was preempted by leveraged funds. Since May 2018, the net short of the greenback positions in the last week touched upon their most significant level. This is according to data released by the United States Commodity Futures Trading Commission. Source: Myforexnews.com
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