Let us check the situation in the United States. John Hardy works at Saxo Bank. He is the head of FX strategy there. Hardy said that the euro/dollars’ primary technical triggers look to be close below 1.1700 or above 1.1900. This is to establish direction.
The euro earlier rose to a six-day high of $1.1850. Afterward, the euro last traded at $1.1807. It was down 0.2% on the day.
Last week, the dollar’s index against six major currencies was at a two-year low of 92.12. Now, the dollar’s index against six major currencies was at 93.04, up to 0.2%. It was still near to its weakest this week.
The Federal Reserve expanded its balance sheet by as much as around $3 trillion. It happened at the start of the pandemic. Thus, it is far more than the Bank of Japan and the European Central Bank.
Against the Japanese yen, the United States dollar was steady at 106.04. Prime Minister Shinzo Abe will hold a news conference on Friday. It is a crucial moment for the yen. There is growing speculation over his health.
Thus, if Abe resigns, the yen will most probably gain. Traders said that the aggressive monetary easing with close cooperation between the central and the government, dubbed Abenomics, has been one of his trademark policies.
The British sterling gained nearly 8% in three months. Recently it stood firm at $1.3194. The Australian dollar changed hands at $0.7246; it was up 0.2% on the day.
Since January, the Chinese yuan was at its strongest. Data Showed re recovery in profits at China’s industrial firms.
The offshore yuan rose before to 6.8699. Recently, it stood at 6.8827 per dollar, its strongest since January 21.
The market ignored the latest sign of rising tension between China and the United States. On Wednesday, 24 Chinse companies were banned in the United States. Moreover, it targeted individuals connected to military and construction activity in the South China Sea.
- Trading Instrument