Forex News: the yuan, yen, dollar, euro, and pound

Forex News: The Yuan, Yen, Dollar, Euro, and Pound

On October 20, Tuesday, the yuan held near a two-year high against the U.S. dollar in offshore trade on signs of China’s strong economic rebound. In contrast, the Australian dollar fell to a three-week low.

Broader risk sentiment was curbed by caution ahead of a Tuesday deadline to reach an agreement on a U.S. coronavirus aid package and U.S. presidential election, which will be held on November 3.

Moreover, China’s offshore yuan increased as high as 6.6695 per greenback on October 19. Thus, surpassing its 2019 peak and reaching its most substantial level since July 2018. It last stood at 6.6806 level.

Remarkably, the yuan’s increase started on October 19. Recovery also started in China’s consumer sector, which supported the Chinese currency to rise. Additionally, except for the Chinese currency, the euro also began to increase.

According to Kazushige Kaida, head of FX sales at State Street Bank’s Tokyo branch, the U.S. will have to rely on easy monetary policy to help the economy. And that will continue to put pressure on the greenback. He added that the offshore yuan is the most apparent manifestation of that.

Besides, the Australian dollar decreased by 0.3% and settled at $0.7045. Reaching a three-week low of $0.7038 on rising expectations of monetary dipping following month by the country’s central bank.

Moreover, the New Zealand dollar dropped 0.4% and touched $0.6578 on the day.

The euro gained 0.44% and reached $1.1767

Broader confidence was also dented by a decline in U.S. share prices as investors became cautious about prospects of a stimulus deal in Washington.

In Asian trade, the euro stood at $1,1767, after a 0.44% raise on October 19.

Sterling also held on to small increases made the previous day at $1.2941.

According to David Frost, Britain’s Chief Brexit Negotiator, there was no basis to continue trade talks with the European Union unless there was a fundamental change in Brussels’ approach to negotiations.

It has to be mentioned that investors still believe British and European negotiators might be able to salvage post-Brexit trade talks to prevent disruptions that a no-deal finale to the five-year Brexit drama would cause.

The pound was little changed against the euro and touched 90.88 pence per euro. On October 11, it reached a five-month low of 92.90; however, it could recover.

Moreover, the U.S. dollar traded little changed at 105.46 yen.

According to the chief currency analyst at MUFG Bank, Minori Uchida, the yen could have grown on the risk-off mood. Still, since the market is already long on the yen, those positions’ unwinding appears to offset safe-haven buying.

Sending
User Review
0 (0 votes)

RELATED POSTS

Leave a Reply

tmn-img-28-1

Share this on

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Rec­om­mended for You

Subscribe to Our Newsletters

Have The Best Of Trade Market News Delivered Directly To Your
Mailbox. Subscribe To Receive The Latest Market News.