Global currencies step up resistance, trade higher against the US dollar


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Global currencies step up resistance, trade higher against the US dollar

After dipping against the American dollar, the major currencies of the world tried to turn around their sagging value on Thursday. The biggest reason for this coming about was that there seemed to have been a consensus reached for a potential Brexit deal between the United Kingdom and the European Union.

The Pound Sterling was trading at around 1.29 against the American dollar, an increase of about 1.2%. It also made positive inroads against the Euro and was trading at around 88 pence, which came to a gain of about 0.5%. Commerzbank's analyst Ulrich Leuchtmann stated, as quoted by Reuters, "This is a significant development for the pound as it alleviates some market concerns on how would London finance its big current account deficit."

The Euro was trading at around 1.13 against the dollar while the Australian dollar also traded higher by about 1% at around 0.70 against its American counterpart. The yen also traded higher at slightly under 113, at 112.90 against the dollar.

On Wednesday, it had slipped down to around 113.38 against the dollar. On these gains made by these global currencies, Societe Generale's analyst Kit Juckes was quoted by Reuters as, "We are doing the opposite from what we were doing yesterday.

We’ve got a reasonably risk-friendly market, and with the new month we have some dollar selling." In addition to these currencies trading higher, the South African rand, the Turkish lira, the Yuan, the Russian rouble, the Swedish Krona and the Norwegian Krone also gained against the American dollar.