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28.05.2020 09:54 PM
Firmly in place: US dollar almost without movement

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The US currency began its trading rather weakly today: no rapid changes in its course have occurred. At the same time, the currencies of the Asia-Pacific region were experiencing rather strong and ambiguous pressure against the background of increasing tension between the largest economic powers - the United States and China. In addition, the situation was corrected by news about accelerating the pace of economic recovery after the lifting of restrictive measures associated with the coronavirus pandemic.

The aggravation of the skirmish between Washington and Beijing had a serious impact on the national currency of China, which in turn inevitably affected antipodes. The mood of the market participants became restrained, which was clearly facilitated by the positive on the stock exchanges of the world.

According to the dynamics of the renminbi, one can traditionally judge all the intricacies of the relationship between the United States of America and China. Recall that yesterday's yuan rate was at the lowest level of 7.1966 yuan per dollar. Trading today recorded a slight drop in the US currency: the current level of the yuan is 7.1796 yuan per dollar.

The Australian dollar also fell today: a decrease in its value was 0.25%. The current level, thus, was consolidated at around 0.66085 aussie per dollar.

The New Zealand kiwi was stronger and managed to remain at 0.6187 kiwi per dollar.

In the end, it should be noted that the macroeconomic situation in the world continues to stabilize, and the currency market can no longer ignore it, although it is trying to cling to the conflict between the US and China.

Also, one should not forget that for the Asia-Pacific region, Chinese problems are also extremely important and act as an engine that gives this or that dynamics. In view of this, it is worth noting that the foreign exchange market was a little cautious in anticipation of further actions by the Chinese government in response to statements about Hong Kong and sanctions by the US.

As the world froze in anticipation of a new wave of conflict, the single European currency moved extremely unevenly. First, it was able to update its highest value over the past eight weeks at 1.1035 euros per dollar against the news of a possible monetary tranche in support of the economy of the eurozone countries, and then dipped because the possibility of cash injections was a big question. Now the euro is trading around 1.1016 euros per dollar.

The US dollar remains quite stable relative to the Japanese yen and the British pound. The greenback slightly rose by 0.1% against the yen, and began to trade at 107.83 yen per dollar. At the same time, it maintained its performance against the pound in the region of 1.2262 dollars per pound.

The dollar index to the main basket of six world currencies was able to move away from the lowest values for the last two weeks and reached 98.915 points.

Maria Shablon,
Experto analítico de InstaForex
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