This morning, the exchange rate of the greenback was marked by a slight decrease in relation to the euro. Meanwhile, the dollar remained stable in relation to the Japanese yen. The yuan, on the other hand, began to get cheaper since the National Bank of China decided not to change the level of the base interest rate, which remained at around 3.85%.
The main factor that puts pressure on the US dollar was the EU summit, which took place at the end of last week in a video conference format. During the meeting, some agreements were noted regarding the creation of an economic support fund for the EU states, the idea and amount of which have been discussed for a long time. Members of the organization have not yet been able to reach a complete agreement on both the size and distribution of funds between the affected countries. The Friday meeting brought the parties closer to the adoption of an agreed decision related to the seven-year budget of the future fund. Further agreements will be adopted at a real meeting of participants, which is scheduled for July this year, provided that the epidemiological situation allows it.
Aussie, on the other hand, is becoming stronger. The main reason for the rise should be considered an improvement in the forecast for the state labor market. According to the Reserve Bank of the country, the number of hours worked will be less by 10%, whereas previously it was assumed that the reduction would be 20%. In addition, the head of the regulator noted that the authorities are ready to take any measures that can stimulate economic growth. Thus, interest rates are likely to continue to be at an unprecedented low level for at least a couple more years, and if necessary, even longer. Recall that in March of this year, the regulator reduced the base interest rate to 0.25%, which was a record low.
The value of aussie against the greenback increased by 0.45% and reached the level of 0.6866 dollars for the aussie.
In the morning, the value of the euro rose by 0.22% and reached the level of 1.1203 dollars per euro. Recall that Friday's trading closed at around 1.1178 dollars per euro. In relation to the Japanese yen, the single currency of Europe also increased (by 0.27%) and began to trade in the region of 119.78 yen per euro. Bidding last week ended at around 119.46 yen per euro.
The greenback has grown a bit in relation to the Japanese yen. It increased by about 0.06%, and the current level is 106.93 yen per dollar. This is also higher than the last auction last week, when the ratio of these currencies was at around 106.87 yen per dollar.
Meanwhile, the GBP/USD pair fell by 0.28%. Its current level was around $ 1.2384 per pound. Bidding on the last business day of the last week ended at around 1.2348 dollars per pound. The euro also fell in price against the pound sterling by 0.14%. It began to trade at a level of 1.1063 euros per pound, while the last mark was around 1.1047 euros per pound.
The Chinese national currency dropped to 7.0793 yuan per dollar, compared with the previous value of 7.0723 yuan per dollar. Recall that the country's main regulator - the People's Bank of China - for the second month leaves the base annual interest rate unchanged at 3.85%. At the same time, the interest rate on loans for a period of five years was also not revised and remained within 4.65%.
The index of the greenback against a basket of six major currencies of the world fell by 0.07% today compared with the previous trading day. Recall that on Friday last week he reached his maximum for the current month indicator, which was at around 97.6 points. Market participants expressed serious concern about the possibility of a second wave of the COVID-19 pandemic. Also, they were not at all pleased with the statistics, especially regarding the level of unemployment and newly submitted applications to the labor exchange.
The greenback can now demonstrate a good strengthening, which will be provided by the desire of investors to preserve their assets. In general, the situation with an increase in the number of cases in the world will strengthen the greenback, so we can expect its further growth in the long term.
