The US dollar remained on top and yet again secured its apex in the recent two and half weeks on Monday and Tuesday as fears of a trade war continues.
The dollar was up at 97,947, the US dollar index chart, which measures how the US currency is perfoming in direct juxtaposition to its six main rivals competitors namely the Euro, British Pound, Bahraini Dinar,Kuwait Dinar,Jordanian Dinar and Oman Rial.
This growth came after the US federal government announced limitations on the importation of items made from the Chinese firm Huawei.
The dollar is described as a “safe haven” currency to which investors turn to during the difficult times and this appears to be the truths. According to the Markets Insider in terms of the interest rates changes, the chairman of the US central bank the Federal Reserve, Jerome Powell, said that he could not yet predict what effects the ongoing Sino-US trade dispute would pose.
Powell was speaking at the Annual Financial Markets Conference at the Federal Reserve Bank of Atlanta in Florida on Monday where he said “Regulators, investors, and market participants around the world would benefit greatly from more information on who is bearing the ultimate risk associated with CLOs,” Powell retorted.
Precisely he pointed to collaterized loan obligations(CLOs) he also pointed out that business debt has grown slower comparative to GDP than household debt soared which lead up to the financial crisis and household debt-to-income ratios have gradually decreased since the crash.
All banks which are at the nucleus of the US financial syst
em are also”fundamentally stronger and more resilient,” Powell said as gigantic requirements and stress tests resulted in them maintaining huge capital. The ernomous US banks also hold only $90 billion of the roughly $700 billion in entire CLOs, he added.
The euro was stagnant against the US dollar in the EUR/USD pair to $1.1166, even though it had previously went down to $1.1150 in this pair. This is another very busy week for the forex markets indeed.
The Federal Reserve glances at the four major factors in assessing financial stability risks which are funding risk, valuation pressures, leverage in the financial system and borrowing by businesses and households.