Let us check the situation surrounding the dollar. The Federal Reserve has expanded its balance sheet by as much as around $3 trillion. This is since the start of the pandemic. Moreover, this growth is far greater than what the Bank of Japan and the European Central Bank achieved.
Against the Japanese yen, the United States dollar was steady at 106.04 <JPY=EBS>. There will be a news conference by Prime Minister Shinzo Abe scheduled for Friday during growing speculation over his health is a key focus for the yen.
The yen will most probably gain if Abe resigns. Aggressive monetary easing with close cooperation between the central bank and government has been one of his trademarks. This is also dubbed as Abenomics. That is what traders have generally said.
Having gained nearly 8% in three months, the British sterling stood firm at $1.3194 <GBP=DS>. On the day, the Australian dollar <AUD=D3> was changing hands at $0.7246, up 0.2%.
The Chinese yuan has been at its strongest since the month of January. This was after data showed a recovery in profits at industrial firms in China.
Having risen before to 6.8699 per dollar, the offshore yuan stood at 6.8827 <CNH=EBS>. This is its strongest indicator since January 21.
The market appeared to ignore the latest sign of rising tension between China and the United States. On Wednesday, the United States blacklisted 24 Chinese companies. The US targeted also individuals over construction and military activity in the South China Sea.
Additionally, if Powell fails to meet forecasts, there is potential for a correction in euro/dollar. The euro/dollar rose as high as $1.1966 last week. This happened after the minutes of July’s meeting of the Federal Reserve showed its doubts about introducing yield-curve control. Ester Reichelt, an analyst at Commerzbank, said this.
Therefore, she said that Forex market participants hope that Jackson Hole will once again provide a little more clarity about the immediate monetary policy outlook.
Key Points: AUD/JPY broke below a rising wedge, signalling possible bearish momentum, with immediate resistance at 103.00 and support at…
Key Points EUR/JPY Rises to 168.25: Strengthened by robust Eurozone economy and steady ECB policy. Eurozone GDP Grew by 0.3%…
Key Points: Nio's shares hit 44.20 HKD, up 20%, with electric vehicle deliveries up 134.6% year-on-year to 15,620. BYD leads…
Key Points: Ethereum fell sharply from $3,355 to a low of $2,813, reflecting high volatility and sensitivity to market dynamics.…
Key Points Nikkei 225 slightly fell by 0.1%, while the Hang Seng index surged by 2.4%. USD/JPY increased slightly, highlighting…
Key Points: Gold prices rose on MCX India to ₹71,278/10 gm and COMEX US to $2,328/oz. The US Dollar Index…
This website uses cookies.