Dollar is on Track for a Weekly Gain

The almighty U.S. dollar is on track for its best week since early April as Forex traders head into Friday’s trade session. Traders are unnerved about the cratering crude oil prices and the weakness in with commodity prices is helping support the U.S. dollar.

Currency traders are also monitoring the political stalemate in the European Union over using its emergency fund to insulate their economy against the economic shock of the Covid-19 global pandemic shock. This is a drag on the euro currency.

The U.S. dollar index, which measures the greenback against six other currencies, up 0.8 percent for the week. The greenback is up three percent against then Norwegian krone, which has high exposure to oil. The greenback is up one percent against the euro so far this week.

The American currency is also trading higher against other commodity currencies from New Zealand and Australia. Sentiment is down as a possible cure from Gilead to combat Covid-19 has failed.

Both the AUD/USD and NZD/USD currency exchange rates are down 0.2 percent during the Asian trade session.

Traders Monitor Political Drama in Europe and Support the US Dollar

The EUR/USD Forex market is near a monthly low priced point at 1.0756 as the European Union has failed to reach an agreement on how to build a trillion euro emergency relief fund.

The Eurozone finance ministers have left the door open for further talks as they try to reach an agreement to insulate member state economies against the damage being done from the coronavirus outbreak.

The countries of Italy and Spain have been hit a lot harder than Germany. The more established economies of the euro area, like Germany and France, are leery of being responsible for the debt of the less stable economies in the Mediterranean area, or south. This has brought long held and simmering tensions back to the forefront in the European Union.

The European Central Bank is cautioning that output throughout the Eurozone could fall as much as 15 percent this year.