Today, the bulk of commodity currencies has strengthened against the US dollar. Interest in risky transactions in the market grew amid excellent statistics reflecting economic recovery at a faster pace than previously thought. The Chinese yuan rapidly went up after the publication of statistics, but the US dollar was under pressure from the news of an increase with the number of COVID-19 patients in the country over the weekend.
In addition, China's securities have shown steady growth for the fifth week in a row, and so far the end to this trend is not yet foreseen since there are still more positive outlooks on the market than negative ones. The Chinese government also has hopes for a quick economic recovery after the crisis brought by the COVID-19 pandemic. So far, these hopes are not baseless since the yuan today was able to get to the maximum values against the dollar, which has not been fixed since mid-March of this year.
The problem of China is that the economy remains too dependent on external factors, which, by the way, are now more favorable than before. In this regard, the government of the country begins a period of great and laborious work, which consists in the proper construction and regulation of all actions, which, in turn, can ensure further success and growth. A steady rise in the Chinese market can pull up not only the entire Asia-Pacific region, but also the rest of the world.
A positive sign is the growing economic activity of China in various sectors. At least Australia's closest neighbor, as well as the European region, will be pleased because, for them, Chinese partners are one of the main ones.
Today, the euro increased by 0.38% and reached the level of 1.1292 dollars per euro, closely approaching the maximum value of 1.1303 dollars per euro. The volume of orders in the German manufacturing sector over the last month of spring increased by 10.4% which served as a good indicator for this growth. In addition, the overall retail sales in the European region also jumped significantly by 17.8%.
The aussie also strengthened by 0.3% and reached the level of 0.6954 dollars per aussie. The main attention of the foreign exchange market here is directed to the next meeting of the Reserve Bank of the country, from which certain decisions regarding further monetary policy are expected.
The pound sterling also began to cost a little more, which allowed it to be at the level of 1.2492 dollars per pound sterling. The rise here began to be recorded after the country's finance minister declassified the government's plans to increase the minimum threshold for the real estate tax, as well as a short-term reduction in value-added tax in the services sector.
Meanwhile, the value of the US dollar against a basket of six major currencies of the world fell by 0.3% today and reached 96.908 points, which is the lowest value since the beginning of this month.
Taking risks is becoming fashionable among investors during this time of crisis, which, of course, is not at all in the hands of the US dollar, which is also under pressure due to the increasing number of COVID-19 patients in the United States. The pressure on the dollar is great enough, and so far there are no ways to overcome this situation. The preliminary forecasts of analysts, who have recently been revised for the worse, added fuel to the fire. So, the Goldman Sachs agency has adjusted down its data on the possible growth of the US economy. So, now GDP is expected to decrease by about 4.6%, whereas earlier it was announced that it would fall by no more than 4.2%.
As some experts note, this is not the only reduction that the country will have to face in the near future. Consumer spending will also slow down significantly, due to new restrictive measures to counter the spread of COVID-19.
