Dollar showed better dynamics at the end of last week and at the beginning of this week. The driver of its impeccable growth was the alleviation of the risk of escalation of the US-Iran military conflict. Experts believe that in the near future, the US currency will strengthen its position.
Last Friday, the dollar achieved the largest weekly increase recorded in the last half-month - up to 0.7%. The reason for this was the decline in geopolitical tensions in the Middle East, which made the investors to resume buying risky assets. Another factor of the dollar's growth is the strong macroeconomic data on the labor market in America (NFP), published last Friday, January 10. They gave investors a good reason for optimism, experts believe.
Prior to the release of the economic data, the EUR / USD pair was in prostration. Experts have recorded a significant decline of up to 1.1097–1.1098.
Later, however, the pair pulled up sharply, reaching the level of 1.1110. EUR / USD showed a clear upward trend.
On Monday morning, January 13, the EUR / USD pair continued its positive trend. It remains in an upward spiral, and is maintaining a growing dynamic. At the moment, the pair runs between 1,1128–1,1129.
Many analysts believe that the dollar will benefit if the US-Iran conflict escalates. In such a situation, the yen and the Swiss franc will get a head start over other world currencies. Analysts are sure, however, that the US currency will not miss its chance in any case. It will not only maintain, but also strengthen its dominant position in the global currency market.
Another significant support for dollar is the macroeconomic data in the United States. It showed an increased demand in the service sector, a reduction in the number of applications for unemployment benefits and a sharp increase in private hiring. Experts emphasize that the growth of the US currency was particularly noticeable in relation to the Japanese yen and the Swiss franc - by 1.7% and 1%, respectively.
Against this background, the European currency looked pale, retreating from the previously won peaks. Prior to the release of the NFP, the Euro updated another low, losing again to the dollar. Nevertheless, the European currency feels good, because on Monday morning there is a positive news background that can support it. Recall that on January 15, the signing of the first phase of the trade agreement between Washington and Beijing is expected. Experts believe that this is a good news for the Eurozone and the currency.
According to experts, dollar will benefit on the signing of the US-China Treaty. The currency is determined to win, and for this, he has every chance. Analysts believe that in the near future, the position of the US currency will strengthen.
