European currencies declined. What about the Yen and Aussie?

174
European currencies declined. What about the Yen and Aussie?

European currencies fell slightly on Monday as the investors bought the safe-haven U.S. dollar. The euro dropped down by 0.2% at $1.0858, and the pound declined to $1.2477. The dollar also strengthened against the Japanese yen by 0.2% to 107.77 yen.

The U.S. state governors have argued with President Donald Trump over the coronavirus testing capacity and how quickly their economies can re-open. Trump wants to speed up the process. On the other hand, Britain is not considering lifting its lockdown, according to a senior minister.

Investors are waiting for the U.S. monthly employment figures, as well as eurozone survey indicators. The analysts think that this week will be crucial to the pandemic recovery as the authorities worldwide make tentative steps toward easing lockdowns.

What about the Australian and New Zealand dollars?

The riskier currencies, including the Aussie and New Zealand dollar, rallied during the last days. But as the investors expected some dire news soon, the U.S. dollar strengthened against them.

The risk-sensitive Australian and New Zealand dollars and the oil-sensitive Canadian dollar fell roughly by 0.3% on Monday. The authorities are planning an economic re-start worldwide, but traders fear that it will be a long and challenging process.

The Australian dollar was down at $0.6344, a cent lower than a one-month high hit last week. Meanwhile, the New Zealand dollar held at $0.6013 after a strong first-quarter inflation. Traders are closely watching an announcement due in New Zealand on Monday about the country’s next steps concerning existing restrictions.

The Chinese yuan was also steady at 7.0711 per dollar in offshore trade. Investors expect China to cut its benchmark lending rate later on Monday as it suffered its first quarterly growth contraction.

Investors are three weeks into a quarter that looks like it’s going to be the worst in many decades – noted Sean Callow, Westpac FX analyst in Sydney. According to him, risk appetite won’t last very long.

  • Support
  • Platform
  • Spreads
  • Trading Instument

For more news updates, visit our homepage now and see our latest news article. Want to learn more about trading? Visit our education page now and learn for FREE!

Leave a Reply

Sending