The Japanese yen is preparing to update the five-month high due to lack of progress in trade negotiations between the US and Mexico. Trump's new attack has a negative impact on risky assets, and investor sentiment has shifted to safe-haven currencies. Together with the yen, the euro is growing, which has recently strengthened against the backdrop of the dollar's weakness caused by the high probability of the Fed's interest rate cuts. Today's meeting of ECB officials will show how much the regulator is concerned about the signs of a decline in economic growth in the region.
Concerns about the recession are spreading around the world, and Central banks are lowering rates, which could signal the beginning of a global cycle of monetary easing. The Japanese yen has become a major asset that investors consider more secure. The increase was 0.3% to 108.07 yen per dollar. The Mexican peso, already burdened with trade problems, took a hit after the credit rating Agency Fitch downgraded the country's credit rating from BBB + to BBB, just two points above unwanted status. The euro rose 0.05% to $1.1227, after falling 0.3% on Wednesday. This week, the single currency peaked at $ 1.1307.
One of the main questions for the ECB meeting is whether the monetary policy Council will adhere to its opinion that the economy will recover in the second half of the year. It is expected that the ECB head Mario Draghi will insist on further stimulation.
