[ad_1]
© Reuters. PHOTO OF THE FILE: Euro, Hong Kong dollar, US dollar, Japanese yen, pound and 100 yuan Chinese banknotes can be seen in this illustration on January 21, 2016. REUTERS / Jason Lee / Illustration / File Photo
By John McCrank
NEW YORK (Reuters) – The dollar fell on Friday against the Japanese yen as it sided with dangerous currencies as the US Treasury meeting was groundless and global stock markets stabilized.
Recent data from the US, coupled with the rise in COVID-19 cases in various parts of the world, have sparked crises that led to a global economic recovery from the ground and resulted in an eight-day decline. Friday.
“This week has been about the collapse of the bond market and treasury yields,” said Edward Moya, chief market analyst at OANDA. “Part of that movement was probably excessive.”
Yield growth supported more risky assets and currencies, global stock markets soared and commodity-related Australian and New Zealand dollars bidded.
It rose 0.79% to $ 0.74905, after hitting the first low of the year at $ 0.7410, and rose 0.81% to $ 0.7002, plunging more than 1% in the previous session.
The euro extended gains on Thursday by a 0.45% jump, rising 0.27% to $ 1.1876.
0.252% slipped to 92,131. Graph: World FX Rates https://tmsnrt.rs/2RBWI5E
The fall in the new dollar is likely to come as a result of gains in major US inflation data next week, said market chief analyst Joe Manimbo Western Union (NYSE 🙂 Business Solutions.
“The dollar bulls are pulling some chips out of the table,” he said.
The yen, which was perceived as a protective currency, declined as risk appetite began to recover.
“Yesterday’s decline in the yen of the dollar is reversing with risk appetite suggesting that there is currently no open issuance effect in the markets; the same move is seen with US 10-year returns returning more than 1.3%,” said Steen Jakobsen, chief investment officer at Saxo Bank.
The yen eased 0.39% to 110.185, and returned a new gain since Thursday, when it had its biggest daily rise since November.
The Canadian dollar rose 0.61% against the U.S. dollar to $ 1,2453 as oil prices rose and data showed that Canada added more jobs than expected in June as public health cuts eased in several regions of the country.
Elsewhere, the People’s Bank of China has said it will reduce the reserve requirement ratio (RRR) – a percentage of deposits that lenders must maintain – by 50 basis points for all banks, starting July 15, and push them to more risky activities. .
“We’ll probably see another boost from this RRR cut and I think we’ll probably see it when it opens in Asia on Sunday,” OANDA’s Moya said.
Looking ahead, June U.S. retail sales numbers will also arrive next week, along with U.S. bank earnings.
Added to last week’s busy schedule, US Federal Reserve Chairman Jerome Powell is expected to appear in Congress, and the rate decisions of central banks in Japan, Canada and New Zealand are under pressure.
[ad_2]
Source link
