The US dollar continues its negative dynamics against the euro and the pound sterling on Wednesday. However, it is growing against the Japanese yen. The greenback remains in a negative position as it still continues to consolidate near its lowest levels for the last two years.
At present, the main news that puts pressure on the foreign exchange market is coming from the political sector. Market participants particularly played out the news that the Democratic Party had nominated former Vice President Joe Biden as its candidate for the US presidency.
In addition, the minutes of the meeting of the US Federal Reserve Committee on Open Markets is expecting publication on Wednesday. Note that the said meeting took place on July 28-29, and investors are waiting for the details of its course. At the same time, a conference of another regulator, the Federal Reserve Bank, is currently taking place in Kansas City, whose decisions also have a serious impact on the foreign exchange market, so traders are closely watching these events.
The main topics for discussion should be, first of all, control of the yield curve, as well as maintaining a high level of inflation. Issues of digital currencies will also be raised. Much of the problem, however, is how to apply these measures in future fiscal policy.
Meanwhile, the yen decreases its value due to the weak data on economic growth. The level of exports in the country in the second month of summer became lower despite the fact that supplies to the territory of the PRC showed the first rise in the last seven months. Thus, the fall happened for the twentieth month in a row. Compared to July last year, the level of exports decreased by 19.2%. Imports also underwent a negative correction of 22.3% in July this year, in monetary terms, losses correspond to 5.36 trillion yen. And this is also the fifteenth failure in a row. The foreign trade surplus in the country was at the level of 11.6 billion yen, while the same indicator of the previous year was 254 billion yen. It is noteworthy that the surplus was recorded for the first time in the last four months.
The pound sterling, on the contrary, is increasing its value. Market participants are looking closely at the next phase of negotiations over a trade agreement between the EU and the UK. Until now, it was not possible to agree on the main problems, to which investors also paid attention. Moreover, statistics on the country's economy leave much to be desired. The level of consumer prices in the second month of summer increased by 1% on an annualized basis. This means that inflation accelerated by about 0.6% compared to the previous month.
The euro also increased its positions by 0.09%, which allowed it to move to the level of 1.1942 dollars per euro, while yesterday's rate was at around 1.1931 dollars per euro. However, it is noteworthy that during yesterday's session the rate of the euro was close to its maximum values, which were last recorded more than a year ago and then amounted to 1.1945 dollars per euro.
Further, the euro is also growing against the Japanese yen. Today's gain is 0.19%, which moves the rate to the level of 126.00 yen per euro. Note that Tuesday's trading ended at around 125.76 yen per euro. The dollar against the yen slightly strengthened by 0.09% and began to trade at 105.51 yen per dollar. On Tuesday, it cost 105.41 yen per dollar.
The pound sterling also grew in price against the dollar by 0.15% and reached 1.3259 dollars per pound. The trading session on Tuesday ended at around 1.3239 dollars per pound. On the other hand, the euro declined slightly against sterling by 0.05% and began to cost 1.1102 euros per pound, and yesterday it was around 1.1096 euros per pound.
The dollar index against a basket of six major world currencies strengthened slightly on Wednesday by 0.03%. In contrast, the dollar index fell 0.06% against a basket of sixteen major world currencies.
