Optimism is at an all-time high when it comes to the US-China deal. This helped the dollar to hit a three-week high and this was against the Yen. This happened on Friday and it is moving through a much broader foreign exchange market. Donald Trump, the US President has stated that a deal with China could be released in the next four weeks. He has however warned that it would be very difficult for China to trade with the US if the issues that are present at the moment are not resolved. The dollar has risen to a three-week high and this now stands at 111.80 yen to dollar. It is also holding firm against a huge range of other currencies as well. When you look at the basket of currencies, you will soon find that the dollar has slipped. That being said, it has stayed below the recent highs. A lot of major currencies are now trading in very tight ranges to say the least. The focus for the US job market is going to be released at 12:30 GMT. This is going to help traders to decide how the economy is doing so far. Of course, it’s important to know that the MUFG have pointed out that the market is in fact struggling, and that it has zero direction when you look at the jobs report.
Expectations have been set for a rebound in growth and this comes after a very weak February. The ING analysts have suggested that the data shows that 160,000 jobs were created in March. This ultimately means that the dollar is going to gain. Of course, if a non-farm payroll is going to be released then this would be very useful for the dollar. This is especially the case when you look at the low yielders. This is going to be good for risk assets in general and it has also been confirmed that a lot of US domestic demands should really stay strong. That being said, they should also allay any fears of recession too but who knows if that is going to happen.
The single currency also rose against the Swiss franc as well. It has traded down by 0.1% and it is now at 1.1232. The franc has fallen back in 2019 as well and this has really helped to boost the Euro. Sterling has strengthened the whole situation and it is the chairman of the UN. Donald Tusk is set to offer Britain a very flexible extension given the country’s own state of the EU and this is going to be up to a year. This is, of course, going to open up the possibility of them leaving sooner. This information has been released by a senior EU official and it is also possible that more will change to do with this. With things going as they are, it’s safe to say that more needs to be done about the Forex market because the last thing that anyone needs is a crash.