In addition, risk appetite was caused by the aggressive easing of monetary policy in China, which is thus trying to solve the problem of a sharp economic downturn and the hope that Washington and Beijing will be able to conclude a trade agreement. As a result, the euro rose against the dollar by 0.22 percent, the Australian dollar, a risk appetite barometer, rose 0.2 percent and reached its highest level since December 20. In relation to the yen, the dollar fell 0.41 percent, reaching 108.09 yen. Sterling rose by 0.12 percent, to 1.2742 dollars.
The flow of news that we have seen since Friday, raised its spirits. The market was certainly pleased with what Fed Chairman Jerome Powell said, but this reaction was negative for the dollar, while China's reduction in requirements for bank reserves led to an increase in consumption, which should support the Australian dollar.
Despite stronger than expected US employment data for December, there is a reason to believe that the world's largest economy is losing pace, and a further increase in interest rates is the last thing it needs. Powell's comments that the Central Bank is "ready to change the policy" raised the mood of investors and caused a sharp rise in US stocks. The dollar surely bypassed other currencies in 2018 due to the fact that the Fed is the only major central bank to raise rates. If the Fed keeps its stakes in 2019, there is very little chance of further strengthening the dollar.
