Facebook Pixel

News

Dollar Rises Against Euro And Yen

Dollar Rises Against Euro And Yen

Avatar
Erik Holm - Head of media

The dollar is strengthening against the euro and the Japanese yen during the Asian trading session on Friday, market participants are waiting for the speech of the head of the Federal Reserve System (FRS) Jerome Powell in Jackson Hole. The euro is trading in the morning around $ 1.1068 against $ 1.1082 at the close of the last session.

The value of the single European currency against the yen in the region of 118.02 yen compared to 117.95 yen on Thursday. The dollar stands 106.63 against 106.44 yen. The ICE Index (NYSE: ICE) Dollar, which shows the value of the US dollar against six major world currencies, is growing at 0.18%. The WSJ Dollar indicator, which tracks the dynamics of the dollar against 16 major world currencies, is adding 0.1%.

The focus of the market is on the annual Jackson Hole Symposium, organized by the Federal Reserve Bank of Kansa City. Representatives of the world’s largest central banks, including Powell, who will deliver a speech on Friday, are expected to attend the event.

The protocol of the Fed meeting of July 30-31, published on Wednesday, showed that the leaders of the Federal Reserve, has decided to lower the rate by 25 basis points, refused any forecasting of further policy.

The dollar changes slightly against major currencies after rising the day before

The dollar changes slightly against major currencies after rising the day before

Avatar
Jim Anderson - Public Relations

The US dollar shows slight fluctuations against a basket of currencies during morning trading on Tuesday. The euro is trading in the morning around $1.1083 against $1.1081 at the close of the last session.

The value of the single European currency against the yen is in the region of 118.07 yen compared to 118.15 yen on Monday. The dollar is 106.55 yen against 106.63 yen.

The ICE Index (NYSE: ICE) Dollar, which shows the value of the US dollar against six major world currencies, is down 0.02%. The WSJ Dollar indicator, which tracks the dynamics of the dollar against 16 major world currencies, is losing 0.07%.

The dollar rose on the eve amid growing optimism in the market after reports of Germany preparing incentives in the event of a recession in the economy. As reported, the Minister of Finance of Germany Olaf Scholz did not rule out that Germany could allocate 50 billion euros to support the economy in the event of a crisis. Chinese yuan is trading at 7.0514 yuan per $ 1 on Tuesday, compared with 7.0507 per $ 1 in previous trades.

Meanwhile, the Australian dollar is strengthening at 0.37% and is trading at $ 0.6788 versus $ 0.6763 after the publication of the minutes of the meeting of the publication of the minutes of the meeting of the Reserve Bank of Australia, which state that the regulator will assess the state of the global and domestic economy before deciding on rates.

 

Positive mood for this week in the Forex market

Positive mood for this week in the Forex market

Avatar
Erik Holm - Head of media

If there will be no shocking information from Donald Trump, markets will grow this week. Stocks rise, bonds fall, defensive currencies and gold decline. Markets believed in the stimulus measures of central banks. Stocks rose after the Trump administration announced progress in trade negotiations, rumors are also growing that major central banks will offer stimulus packages to strengthen their economies. Treasury bonds are declining.

The S&P 500 is extending growth for the third day, as U.S. Secretary of Commerce Wilbur Ross said the country has delayed the imposition of restrictions that the Trump’s administration imposed on some business operations of Chinese Huawei Technologies Co. Long-term bonds pushed the Treasury yield curve from inversion, as the US government is considering issuing centenary securities. The Bundes fell because Germany, as already said, is preparing for fiscal stimulus.

Oil rises after a drone attacks a Saudi oil field. Gold has fallen. The week began on a more positive note, as Huawei news was seen as encouraging for the long-awaited trade pact between the two largest economies in the world. The official announcement followed President Donald Trump's tweet on the weekend, which indicated that the US "got along very well with China and talked," but suggested that it wasn’t ready to make a deal yet.

The Japanese currency fell for the third consecutive session against the dollar, while the Swiss currency fell to a two-week low against the dollar. Optimism about the government’s efforts to prevent a recession in the United States, whose fear escalated with the inversion of US bond yield curves last week, widened ahead of a symposium in Jackson Hole, Wyoming, near the end of the week, where central bankers could announce key measures to stimulate.

China has also unveiled interest rate reform, which is expected to lower the cost of corporate loans. It also helped lift the mood of the market, while the prospect that the coalition government in Germany would abandon its balanced budget by issuing new debt as part of its economic stimulus measures also contributed to an increase in risk appetite.

The current situation on Forex

The current situation on Forex

Avatar
Erik Holm - Head of media

Introducing the key events of Friday, August 16th:

Today, the risk sentiment has strengthened amid Trump’s optimistic comments on trade, and a strong US retail sales report has eased concerns about a recession.

Markets ignored the depreciation of the Chinese yuan and the chaos reigning in Hong Kong, as Treasuries and US stocks rose. Asian indices traded in different directions, which restrained the growth of USD / JPY.

USD / JPY steadily kept above 106.00, as USD retained the points scored during the overnight session, and the yield on 10-year government bonds in Japan noted a three-year low. Gold retreated to $1.520, while oil prices rose amid a risk appetite.

In anticipation of the opening of Europe, the Ozzy became the main leader among currencies, and the Swiss franc became the main outsider.

50 members of the opposition Labor Party are ready to join the "dissenting" Tories to stop hard Brexit. British Finance Minister S. Javid will travel to Berlin to meet with his counterpart Scholz to discuss the Brexit deal.

UK retail sales unexpectedly rose to 0.2% m/m in July, so the state of the UK economy is much better than anticipated.

GBP / USD has taken 1.2100, while EUR / USD has been flirting with 1.1100 after statements by ECB representative O. Ren that stimulation of the economy may be more intense than markets expect.

Cryptocurrencies consolidated. Bitcoin is trying to take the mark of 10 thousand.

The dollar remains stable

The dollar remains stable

Avatar
Jim Anderson - Public Relations

On Thursday, the dollar remained stable against a basket of other major currencies. The exchange rate of the “safe haven”, the yen, began to decline against the background of the fact that relative calm returned to the markets after large-scale sales caused by concerns about the situation in the global economy. At 8:40 London time, the US dollar index which shows the purchasing power of the dollar against a trade-weighted basket of six major currencies, changed slightly at 97.81 after rising 0.2% on Wednesday.

The dollar rose against the yen by 0.1% to 106.19. On Wednesday, the yen rose 0.8% against the US dollar, which was the highest growth rate in two weeks. Frightened investors dumped stocks of companies and preferred protective assets after Wednesday, for the first time in 12 years, the yield curve of US long-term and short-term bonds swapped.

The yield curve for two-year US government bonds was higher than the yield curve for the 10-year US-bound. Some analysts see this as a harbinger of the US economy entering a recession phase. Investor sentiment was fragile even after the disappointing economic reports of China and Germany revealed the extent of the damage to the trade war between the United States and China to the leading exporting countries. On Wednesday, US President Donald Trump linked the conclusion of a trade agreement with China with the peaceful conclusion of protests in Hong Kong. Investor sentiment has improved slightly amid hoped that central banks, in particular, the Fed, will move to ease monetary policy.

On Thursday, the US bond yield curve remained inverted for the second trading session in a row. This means that traders maintain pessimistic sentiment regarding forecasts for economic growth. Swiss franc depreciates against the greenback to 0.9746. Euro rose slightly against the dollar to 1.1147.