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The yen jumped to a six-month high

The yen jumped to a six-month high

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Jim Anderson - Public Relations

During today’s Asian trading, the yen against the US dollar reached its highest level over the past six months, while the yield on 10-year US government bonds updated its historic low.

Investors prefer to transfer funds to safe assets, which traditionally include government securities and the Japanese national currency amid uncertainty regarding the development of the situation with coronavirus and its impact on the global economy, experts say.

The Japanese national currency rises in price relative to all 10 major world currencies. The yield on ten-year US Treasuries fell to 0.83%.

Goldman Sachs analysts believe that in the event of global panic in the markets due to COVID-19, the dollar could drop to 95 yen – the level that was last recorded in 2013. According to them, the Japanese currency remains “one of the few classic assets of the safe haven, which remains underestimated”, Bloomberg reports.

The value of the single European currency is paired with the Japanese national currency at the same time amounted to 118.92 yen, compared with 119.30 yen on Thursday. So dollar to 9:06 Moscow time gave 105.84 yen against 106.16 yen.

Dollar depreciates against euro and yen on expectations of Fed cuts

Dollar depreciates against euro and yen on expectations of Fed cuts

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Erik Holm - Head of media

During today’s Asian trading, the US dollar is getting cheaper along with the euro and the yen on rising expectations that the Federal Reserve System (FRS) will significantly lower its base rate to support the US economy amid the spread of coronavirus.

Expectations of the rate cut by the FRS rose after Fed Chairman Jerome. Powell said the Central Bank is “closely monitoring” the situation with COVID-19 and will use its tools to support the economy.

ECB President Christine Lagarde said yesterday that the central bank is ready to take “appropriate” measures, if necessary, to support the eurozone economy, whose growth is constrained by the spread of coronavirus.

As of 7:00 London time, the euro was worth $ 1.1145 compared to $ 1.1134 at the close of the previous session. The dollar in pair with the yen fell at the same time to 107.83 yen against 108.33 yen the day before.

The dollar is slightly growing against the yen

The dollar is slightly growing against the yen

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Jim Anderson - Public Relations

The US dollar is stable against the euro, is growing slightly against the yen and cheaper against the pound. Dollar indices show a slight decrease. The spread of the Covid-19 coronavirus outside of China has raised investors’ concern that the consequences for the global economy will be more dramatic than previously thought. 

Analysts are starting to think that the Federal Reserve System in response may lower interest rates. A number of them expect that the reduction in the cost of lending before the end of this year may reach 50 basis points from the current 1.5 – 1.75% per annum. DBS expects Japan’s economy to show a decline this quarter as well, resulting in a technical recession for the first time since 2012, according to Dow Jones.

As of 8:00 London time, the euro is trading around $1.0855 against $1.0854 at the close of the last session. The value of the single European currency against the yen increased by 0.09%, to 120.30 yen compared to 120.19 yen on Monday, the dollar – by 0.10% to 110.83 yen against 110.72 yen. At the same time, on Monday, the Japanese national currency rose in price by 0.8%, which was the highest increase in six months.

 

Current situation on Forex

Current situation on Forex

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Jim Anderson - Public Relations

During today’s Asian trading, the US dollar against the euro continues to remain near a 3-year high. Investors’ attention is focused on important data for the market from Germany, the publication of which is scheduled for Tuesday.

The index of economic expectations of investors and analysts in Germany for the next 6 months, which is calculated by the ZEW research institute, fell in February to 21.5 points compared to 26.7 points in the previous month, experts interviewed by Trading Economics forecast.

As of 7:30 London time, the euro was worth $ 1.0832, which is the lowest level since April 2017, against $1.0836 at the close of the last session. Since the beginning of February, the single European currency has fallen in price by 2.4%.

 

The euro fell sharply against the dollar

The euro fell sharply against the dollar

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Erik Holm - Head of media

The US dollar remains in demand on the market, but the euro got a lot on Friday, as investors are worried about the low growth of the eurozone. 

The dollar also underpinned a statement by the US Federal Reserve on Thursday that ahead of schedule, it would reduce the volume of open market operations, which would limit liquidity in the US markets. 

At 8:00 GMT the EURO/USD pair was trading at 1.0842, dropping to 1.08228 overnight, the lowest level since April 2017. The US dollar index, which monitors the movement of the green currency against a basket of six other currencies, was 98.957, against only outside the parameters that it had not reached for more than two years. GBP/USD was trading at around 1.2058 relatively calmly.