The euro, Tensions Between Two Countries, and Other News

The euro, Tensions Between Two Countries, and Other News

On Friday, Trump plans a news conference regarding China. The euro is set for the second week of gains.

Traders had to wait for the United States President, Donald Trump’s, response to China’s tightening control over Hong Kong. It could possibly further worsen tensions between the two countries over the financial hub. Thus, on Friday, the euro extended its gains to a two-month high.

Before Trump’s made a response to China passing a national security law for Hong Kong, investors looked for safe havens. As a result, against major currencies, the Yen rose.

Moh Siong Sim is a currency strategist at Bank of Singapore. He thinks that the market is still fearful. It is afraid because it may escalate into something more serious. That would have a meaningful impact if Trump were severe with trade tariffs.

He added that you could never quite predict the United States President, Donald Trump. Nevertheless, Sim thinks it is a challenging year for him to behave so severely.

The Euro and Other Currencies

In Offshore trading, the Yuan was little changed. Per dollar, it traded at 7.1661. This was not far from Wednesday’s reached nine-month low of 7.1965 yuan per dollar.

The euro got a boost after the European Commission announced its stimulus plan earlier this week. It rose by 0.2% to $1.111. Ever since March 30, this is the highest indicator we have seen.

Against the euro, the pound fell. The single currency was last up by 0.3%, at 90.145 pence.

There are calls for the resignation of an aide to British Prime Minister Boris Johnson. Moreover, there is speculation about negative interest rates and a lack of progress in European Union trade talks. The pound has thus been hurt.

Against the dollar, the Sterling was stable, down by 0.04% at $1.2312. Nevertheless, it is still on course for its second weekly gain.

Against the Japanese currency, the dollar fell by 0.4%, at 107.17 yen.

This is the current news of the market.