No factors for a change: US dollar's rate stands still

Trading on currency exchanges in the Asia-Pacific region showed a slight strengthening of the US dollar against the euro today. At the same time, the dollar weakly reduces the value of the yen.

In the morning, the single European currency moved to the level of 1.1286 dollars per euro, while at the close of trading last Friday, its rate was at 1.1292 dollars per euro. The euro also changed its value against the yen: it was at the level of 123.57 yen per euro today, and its price was 123.71 yen per euro at the end of trading on Friday.

The US dollar was worth 109.49 yen today. It can be recalled that its price stopped at 109.59 yen per dollar during last week’s close of trading.

On the other hand, the ICE index, which shows the movement in the price of the US currency against a basket of six major world currencies, is slightly higher – by 0.01% – compared to the previous day. The WSJ index, which reflects the dynamics of the dollar against a basket of sixteen world currencies, on the contrary, declined slightly by 0.01%.

The multi-directional dynamics is due to several factors. Firstly, official statistics from the United States Department of Labor was published on the last business day last week, which reflected a colossal reduction in unemployment up to 13.3% compared to the previous record high of 14.7%. These data did not coincide with preliminary forecasts of experts who expected growth to no less than 19.8%.

Second, market participants are set to sum up the results of the Fed meeting, which will last two days and will come to an end on Wednesday this week. Most experts are confident that the regulator will take decisive steps and end the period of stimulating economic policies. The next monetary tranches and injections are not expected until the exact damage caused to the economy by the COVID-19 pandemic is determined.

At the same time, relatively good news comes from Japan. The forecast for a reduction in the country’s GDP for the first quarter of this year has improved slightly: it has moved from 0.9% to a level of 0.6%. Nevertheless, Japan faced an economic decline that had not existed for more than four years. Many analysts still expected to see a revision of the rate of decline in GDP to the level of 0.5%.

The national currency of New Zealand slightly strengthened against the US dollar. It increased 0.06% and began to trade around $ 0.6512. Perhaps, the strengthening will continue amid the lifting of quarantine measures in the country, which will happen tomorrow.

In relation to the national currency of China, the US dollar is slightly increasing. The course of this morning was 7.0836 yuan per dollar. It should be noted that past trading ended at around 7.0834 yuan per dollar. Here, investors won back the news about an increase in China’s currency exchange reserves over the past month by $ 10.23 billion. However, along with this, the surplus of the country’s foreign trade balance showed a significant increase after a significant decline of both domestic demand and imports.

In general, at the beginning of the new week, the US currency cannot yet determine the vector of its movement and is almost marking time without external factors that can ensure its movement in one direction or another.

Source: No factors for a change: US dollar's rate stands still

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