Charalambos Pissouros is a senior market analyst at JFD Group. He said that investors keep diverting their capital out of safe-havens, the likes of the United States dollar, the franc, and the yen. Thus, risk-linked currencies and equities will most probably continue their journey on the up. The euro, on the contrary, was flat at $1.1316. Traders feared the second wave of coronavirus. As a result, they decided to cash in on any gains. After this, the Euro recovered from the falls a couple of days back.
China banned some people from leaving the capital of Beijing. Moreover, on Tuesday, they halted transportation services, trying to contain a fresh coronavirus outbreak. Novel coronavirus cases have reached over 8 million worldwide. Moreover, Deaths are standing at over 434,00, and in seven weeks, they have doubled.
The dollar/yen pair was neutral, at 107.28. On Tuesday, the bank of Japan kept its monetary setting steady. Thus, it stuck to its view that the economy will gradually recover from the coronavirus pandemic. So, we can see that it is signaling that it has taken enough steps to support growth for now.
The Euro and Others
Market participants are awaiting the United States industrial production and retail sales, which should happen later in the day. In June, German investor sentiment rose more than expected. This was in hopes that the worst of a sharp downturn in the largest economy of Europe, prompted by the coronavirus pandemic, will be over by the summer. That is what a survey showed on Tuesday. Nevertheless, that has not had any impact on the common currency.
The euro gained 2% so far this month. The United States dollar remains stable against the safe-haven Japanese yen. An individual report flags the possibility of more fiscal stimulus shoring up the confidence of investors. The United States Federal Reserve prepared to begin its corporate scheme to buy bonds. Thus, on Tuesday, against the United States dollar, the euro remained little changed.
- Trading Instrument