Marc Chandler, chief market strategist at Bannockburn Global Forex in New York, stated: “It’s not only short term trend-followers, momentum players having to get out of positions. Some long-term structural long dollar holdings have to be unwound.
The euro increased 1.46% in value relative to the U.S. dollar to $1.036, while the dollar fell 1.7% versus the Japanese yen to trade at 138.55 yen.
According to Jim Cielinski, global head of fixed income at Janus Henderson Investors, “the dollar is one of those markets that is extreme in its overvaluation — there is a significant likelihood
However, some strategists cautioned that dollar bears are still susceptible to a potential short-term recovery.
Yes, more people now believe the dollar has peaked, but the shift has been so abrupt that Bannockburn’s Chandler advised against following it.
The poll results released on Friday revealed a decline in U.S. consumer sentiment in November, driven lower by ongoing concerns about inflation and increasing borrowing rates.
Australian and New Zealand dollars, which are more risk-averse, increased versus the dollar by 1.4% and 1.6%, respectively.
Chinese health authorities’ relaxation of parts of the nation’s severe COVID-19 requirements, such as cutting the length of quarantine periods for people who are in close contact with patients and foreign travelers, helped investors’ appetite for risk.
Sterling, on the other hand, increased 1.22% to $1.1853 against the dollar as UK statistics revealed that, despite still entering what is likely to be a protracted recession, the economy did not drop as much as anticipated in the three months to September.
After Swiss National Bank Chairman Thomas Jordan stated on Friday that the bank was willing to take “all steps necessary” to bring inflation back down to its 0-2% goal range, the dollar fell 2.4% against the Swiss franc to 0.94025 francs.
After the collapse of exchange FTX, the turmoil in the cryptocurrency industry continued to put pressure on currencies. The native token of FTX, FTT, was last trading down 26.7% at $2.731, bringing its monthly losses to almost 90%.
To reach $16,747, bitcoin fell 4.6%.
