This morning, the value of safe currencies showed a downward correction. The reason for this was the positive statistics on economic growth coming from different regions, which becomes evidence of the recovery from the crisis associated with the coronavirus pandemic.
All this has a positive impact on risky assets, which are beginning to gain popularity among investors. These, in particular, include the national currency of Australia and China. The pound sterling, on the other hand, turned out to be outside the zone of interests of market participants, due to serious pressure from the uncertainty surrounding government spending on UK domestic goals.
Statistics from the United States proved to be more than positive. It became evidence of the growing economic growth in the country. So, a rapid rise was recorded in the sector of preliminary sales of houses.
The value of yen fell in the morning by 0.2% against the US dollar. Its current level stopped at around 107.77 yen per dollar.
The dollar index against a basket of six major world currencies rose slightly after a rather long decline. It increased by 0.13%, which sent it to the mark of 97.665.
Meanwhile, the swiss franc which is also one of the safe currencies reduced its value by 0.13% and reached the level of 0.9523 dollars per franc. It also fell by 0.07% In relation to the single European currency and began to cost 1.0685 francs per euro.
However, restrained trends continue to dominate the currency market. Participants are not in a hurry to take risks and try to keep their assets in safer areas.
To date, the four currencies of the Big Ten have thoroughly strengthened against the US dollar. Among them, it is worth highlighting the yen, the euro, the Swedish krona and the Swiss franc. All of them were able to return to their pre-crisis positive trade balance level.
At the same time, the aussie also decreased in value by 0.15% and was at around 0.6407 dollars per aussie. Kiwi is also down by 0.19%. Its level is in the range of $ 0.6407 per kiwi.
The Chinese yuan grew slightly by 0.13% and began to cost 7.0702 yuan per dollar in the official market. The cost in offshore is slightly lower which is 7.0696 yuan per dollar. This reflected an increase of 0.08%.
The euro also slightly fell today. Its decline amounted to 0.23%, and the current level was at around 1.1214 dollars per euro.
The pound also fell by 0.18%, which sent it to the mark of 1.2274 dollars per pound. Recall that yesterday it also declined and even reached the minimum values for the last month. The reason for the negative here was statements from official authorities about their intentions to expand the program of financing the state's infrastructure against the backdrop of the crisis connected with the COVID-19 pandemic. Investors are seriously concerned that the government does not intend to support a weakening economy and continue to stimulate it.
In general, foreign exchange markets are experiencing a change in trends. From safe areas, investors began to turn their attention to risky assets that are becoming more popular.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.