Dollar: Biggest Weekly Drop Since Late March
The US dollar is the reserve currency of the world. This is partly based on its use in settling oil prices and other commodities. Foreign exchange pairs are classified as majors, minors, and crosses. Both majors and minors include the USD.
World currencies are influenced by US economic indicators and political developments. The decisions and statements made by Federal Reserve officials result make the biggest impact.
According to Constantin Bolz, a fund manager at Portfolio Concept, a German-based private wealth management firm, major events such as the G7 meeting and the Trump-Kim summit are keeping investors on edge.
The US and South Korea exchanged hostile messages months ago. Now, the peace process has begun. US President Donald Trump and North Korean leader Kim Jong Un met for the first time in Singapore. They promised to work on peaceful relations and toward “complete denuclearization” of the Korean Peninsula.
Successful results will be positive for markets. The safe-haven Japanese yen could get lower. However, in case the meeting will bring about negative results, marketers could be faced with negative outcomes. The safe-haven yen could get higher.
With all this in mind, it’s highly important for merchants to find a reliable and experienced payment processing company to work with. Only a reputable credit card processing company can get you the right merchant services tailored to your own business wants and needs.
So, if you’re interested in a FOREX merchant account or any other merchant services, with a respectable processor, you can get the best deal for your business. A true professional in the field will be willing to work with not only low risk but also high risk merchants and offer the best possible terms and rates in the marketplace.
When it comes to the dollar, it went up 0.4% against a basket of currencies at 93.76. It was set for its biggest weekly drop since late March. The Australian dollar fell over 0.7% to reach $0.7564. It was set for its biggest weekly drop in a month.
Though all the events were fraught with potential risks, the overall currency volatility didn’t go beyond its low levels with implied volatility on one-month euro/dollar segment keeping below February highs.
Author Bio: Electronic payments expert Blair Thomas co-founded eMerchantBroker, serving both traditional and high-risk merchants by offering a FOREX merchant account and other services. His passions include producing music and traveling.