Yen, Euro, Dollar, Australian Dollar, and Other news

Yen, Euro, Dollar, Australian Dollar, and Other news

Since Friday, not much has changed in the market. Versus the dollar, the euro stood at $1.1118, 0.2% higher on the day. Since July, the Australian dollar climbed to its strongest on Friday, buoyed by easing China-U.S. trade tensions. Versus the Japanese yen, the dollar hovered near a six-month high.

On Friday, China’s yuan inched lower against the dollar. Speculation and corporate demand for a possible cut to bank reserve requirements ahead of the new year pressured Chinese yuan.

Chinese Premier Li Keqiang last week said that the government would consider rolling out more measures. So, markets debated if the central bank would lower the cash banks must hold reserves any time soon.

Yen Forex

In foreign trade, the yuan weakened 0.1% to 6.9967 yuan per dollar.

Sterling on December 13 had peaked at $1.3514. On Friday, sterling traded at $1.2993. It is a shade higher than the levels before the Christmas holiday.

Trade optimism supports the dollar and Aussie. Nevertheless, we can sense the holiday mood.

Yen and other Currencies

Traders expect no big moves, so holiday-thinned trade persists.

Demand for the safe-haven currencies weakens due to optimism over the phase-one trade deal. Global currency markets are in a holiday mood, after Christmas Day on Wednesday. The overall trading activity mostly subdued.

Beijing said that it is in close touch with Washington on a trade deal signing ceremony. On Tuesday, US President Donald Trump said that with Chinese President XI Jinping, they would have a service on the agreement signing. Both sides seem optimistic.

Against the safe-haven Japanese currency, overnight, the dollar rose to as high as 109.68 yen. It was a one week high. It was not far away from the peak of late May brushed earlier this month, 109.73 yen.

Trade remains subdued due to the holiday week. There is a little possibility of any significant moves in the market.