The U.S. dollar is on track for its steepest weekly decline in four months, driven by investor belief in upcoming monetary easing and presidential pressure for interest rate cuts. Meanwhile, the Japanese yen edged higher following hawkish signals from the Bank of Japan, as thin liquidity marked the Thanksgiving holiday in the U.S.
Forex strategist Francesco Pesole noted the potential for Japanese intervention amidst the thin trading environment, but believes such actions might follow a dollar weakening event. Despite differing opinions on the U.S. dollar’s trajectory, key market players recommend reallocating investments to the euro and Australian dollar.
Currency analysts are closely monitoring ongoing Ukraine peace negotiations, which could influence the euro while potentially impacting the Swiss franc’s safe haven status. The Pacific currencies, notably the Kiwi and Aussie, saw gains, bolstered by economic indicators suggesting the end of easing cycles in their respective regions.
(With inputs from agencies.)
