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The dollar strengthened the second week in a row: there is more reasons

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The dollar strengthened the second week in a row: there is more reasons

The value of the dollar value on the currency basket has risen last week, for the other in a row, because they somewhat gave up trade tensions between the United States and China and because the odds of the American Fed.

The dollar index, which shows the value of USA to the six most important world currencies, strengthened 0.45 percent last week, 100.04 points.

The euro exchange rate slipped 0.6 percent, to $ 1,1295.

The American currency also strengthened Japanese, by 0.9 percent, so its price reached 144.95 yen.

For a larger part of April, the dollar was under strong pressure due to the US Customs War with the largest trade partners, especially with China.

But in the last two weeks of trade tension between the two largest economies, they reluctantly relax, so the dollar has partially recovered.

After a series of calls from American officials, Beijing told Peking to consider the possibility of trade negotiations.

Analysts expect negotiations to be long and uncertain, but that is, they say, better than the continuation of the customs war that would inflict major damage and one economy.

In the middle of the week, the speculation strengthened that the American Central Bank would soon start reducing interest rates to encourage the growth of the economy.

Namely, it was published that the American economy in the first quarter unexpectedly fell for the first time after three years, while the PMI index of the production sector was further fell in April.

However, speculation on the reduction of the interest rate of Feda slightly weakened on Friday, when it was published that in the United States in April, the number of employees increased by 177 thousand. It is less than a month before, but more than expected.

Thus, it is now estimated that there are 50 percent that the Fed will reduce interest in 0.25 percentage points, while before employment reports, these prospects amounted to 60 percent, Hina transmitted.

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