This morning has become positive for risky currencies. The Australian dollar and similar counterparts have shown a rise after statements by the White House trade adviser and the US president that trade with China will continue and there are no fears of a break in the deal. Recall that earlier news began to arrive that Washington was ready to sharply respond to the possibility of a second wave of a pandemic and abandon trade relations with Beijing completely.
Aussie rose today by 0.17% and reached the level of 0.6895 dollars. This has not yet allowed it to fully win back the decline that occurred yesterday by 0.7%, however, outlined a certain positive trend.
The Chinese yuan, on the other hand, was marked by a decrease in the dynamics of decline in relation to the US dollar. It fell by only 0.22% and was at around 7.0726 yuan per dollar.
The national currency of Japan also went down by 0.22% and began to cost around 107.1 yen per dollar.
All these fluctuations give a clear understanding that the market is closely monitoring the relationship between Washington and Beijing. The slightest hint of deterioration is immediately reflected in exchange rates.
In addition, the situation with the new outbreak of COVID-19 continues to put pressure on the market. According to the information from the World Health Organization, a record number of new patients have been recorded in recent days. Nevertheless, the possibility of a second wave of the pandemic is leveled by reports that quarantine measures are being phased out in many countries of the world. Due to the lack of a single vector, rather serious volatility arises in the market.
The foreign exchange market was well supported by the soft stimulating policy of the Federal Reserve of the United States of America, but it seems that this factor no longer has the proper effect on investors. Now their attention is focused on indicators of economic recovery. If they are really high, support will continue; if the forecasts do not materialize, then the market will respond negatively.
The next event that investors are expecting will be the release of statistics on the level of business activity in the EU. Recall that already quite a large number of states lifted quarantine measures related to the coronavirus pandemic. Now the matter is behind the numbers: investors are adjusting to the fact that the pace of economic recovery will be at a high level. Some facts speak in favor of this. Analysts say that the PMI in Europe will increase and reach 42.4 in the first month of summer. In May, this figure was at around 31.9.
Today, the euro's value against the greenback is in the region of 1.1258 euros per dollar. Recall that just a few days ago the euro fell to the minimum values, which amounted to 1.1168 euros per dollar. Today, the currency managed to move away from the lows, and after that, most likely, there will be a further strengthening, as most analysts say.
