US dollar moves uncertainly. Quotes are changing slightly

Exchange Rates 19.06.2020 analysis

This morning, greenback showed stability. There have been no significant changes in relation to the euro and the yen.

The dollar index against a basket of six major currencies of the world decreased by 0.1%. This includes the Swiss franc, Canadian dollar, pound sterling, euro, Japanese yen, and Swedish krona. Currently, the level is positioned around 97.351. This was evidence of a rise to the maximum value in the last two weeks. In general, over the entire current week, the index increased by 0.3%, which has not been observed for more than a month.

In the morning, the dollar fell in price against the euro. Its current level is around 1.1215 dollars per euro, while yesterday’s trading ended in the region of 1.1205 dollars per euro.

Yesterday, the greenback showed steady growth which provided the news about the rise in the precious metals market. Investors began to show greater interest in the safe haven, as the number of new cases of coronavirus infection in the world is growing steadily, which may be the beginning of the second wave of a pandemic and a new, more serious crisis in the economy.

Another important point for market participants was the publication of unemployment statistics in the United States of America. As it became known, the indicator has become higher, that is, the number of newly submitted applications for unemployment benefits has increased dramatically. Markets and experts who previously predicted a reduction in this segment were not ready for this.

The value of the US currency appreciated slightly against the yen. In the morning, the cost of 1 dollar is 106.93 yen. Recall that yesterday’s exchange rate was at the level of 106.97 yen per dollar.

The course of the single European currency against the Japanese yen also changed very slightly. Some reduction occurred, from 119.95 yen per euro to 119.87 yen per euro, respectively.

The Japanese yen became active after the news from the official authorities of the country. According to the latest data, the forecast for changes in the country’s GDP will be slightly better than previously expected. Positive will be provided by the gradual lifting of the state of emergency in the country, which was introduced in the spring against the backdrop of the COVID-19 pandemic.

Meanwhile, the state’s economy continues to be in an extremely difficult situation. Now even the fact that the situation is gradually getting worse and worse is already pleasing to both the country’s authorities and market participants.

At the same time, the greenback may reflect a record weekly growth this month. Investors in a state of uncertainty turned to a more proven and reliable asset, which again made the dollar popular.

However, the growth dynamics of the greenback is limited by the narrow range provided by the news about the conflict between China and the USA. Recall that yesterday, US President Donald Trump expressed threats against Beijing, while threatening to sever all trade relations. Thus, the escalation of the conflict continues, and the negotiation process, which lasted for several months, has come to a standstill.

The aussie, on the other hand, has become stronger by 25% over the past few months, which was facilitated by stabilization in the markets. However, since yesterday, the rise was not so significant, to the level of 0.6859 dollars for the aussie.

Kiwi, on the contrary, was marked by negative dynamics, which amounted to 0.12%. The morning level was around 0.6418 dollars per kiwi.

The pound sterling became more expensive by 0.16% and reached the level of 1.2449 dollars. This demonstrates a rise to almost the maximum values over the past two weeks. In this sector, investors are seriously worried that the country’s Central Bank will not want to continue a soft stimulating monetary policy and will buy a new portion of securities.

The bullish trend needs some support, but so far there are no such factors, or rather, they are not too serious to push prices upward.


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