American dollar comes a cropper on plausible rate cut, hits three-month low


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American dollar comes a cropper on plausible rate cut, hits three-month low

On Friday, the 21st of June 2019, the American dollar fell against a basket of six major currencies and hit a fresh three-month low after experiencing three straight sessions of heavy losses, as Federal Reserve’s Powell had signaled that strong cases were being built for an interest rate cut, while a safe-haven currency, Japanese Yen spiked to a five-month peak against US dollar, while oil-dependent Canadian dollar surged over a havoc-scale gain of US WTI crude on Tehran-Washington tension and another safe-haven currency Swiss France had posted a weekly gain of more than 2 percent on Friday’s (June 21st) market closure, buoyed by EU commission’s blockage of Swiss stocks into Eurozone markets.

Besides, a much-softer American dollar, experiencing a double whammy on weak economic data including a contracted US factory activity to nearly 117-months low in early June and a jejune job growth over the recent weeks alongside Fed’s commentary over a possible rate cut by July, had lifted the eurozone currency 0.67 percent higher to wind down Friday’s (June 21st) market at $1.1373.

Despite being in an oversold territory as a flight-to-safety market reaction, Swiss Franc added a gain of more than 0.5 percent on Friday (June 21st) market wrap up, meanwhile British currency had also added even with a garrulous debate on UK over selection of PM May’s successor.

Meanwhile, the American currency had rounded off the day drowned at a Nile of red, and extended its losing streak to post a plunge of 0.42 percent to 96.21 against a basket of six major currencies on an average, its lowest level since March 21st.

Nonetheless, adding further policy heads off were awaiting ahead of several central banks across the world to grapple with a sharp slowdown risk, a senior rates and currency analyst at Columbia Threadneedle Investments in Minneapolis, Ed Al-Hussainy said, “Now it’s going to be a horse-race between the Fed and ECB on policy easing”.