Recently the global stock markets soars with irresistible force, the Chinese and US stock market in particular. And driven by new economy, the Nasdak Composite Index hit record high many times, and it closed at 10,492.50 on July 8, another record close high.To get more news about WikiFX you can visit wikifx official website.
This decreased the pressure on USDs liquidity from the market and weakened the safe haven function of USD, putting continuous pressure on the US dollar index. In the short term, the index is more likely to test the low level of 95.716 recorded in May. If it fails to break the level, the index may challenge the low level of 94.650 happened on March 9.
Faced with a weakening US dollar index, non US dollar currencies bounced back in varying degrees. From a perspective in Macro trend, the Swiss Franc has the best year-to-date performance, up about 3.5% again the USD, ranking the first among all currencies. And safe haven Japanese yen ranks the third, up 1.34% this year, second only
The Swiss Franc performed extremely well because of the relatively stable situation of COVID-19 and better economic data in Switzerland compared with that of other European countries. Therefore, forex traders preferred the Swiss Franc to USD as a safe haven. And market estimates that the Swiss Franc will keep maintaining an edge in the second half of this year. In the short run, USD/CHF appears to approach the low level of 0.9181 of March or the low level of 0.9071 recorded in 2015.
It is estimated that cautiously optimism pervades the future Japanese yen market, another safe haven. Recent USD/JPY basically fluctuates at the range of 108.16-106.00, being approaching the level of 106.00. And it is likely to break the level and challenge again the major support level of 104.45.