On November 1, the U.S. dollar fell to the lowest level against Japan’s yen. It is important to mention that this happened ahead of the U.S. employment report. According to forecasts, this report will show that the number of new jobs is falling, which is a serious problem for the U.S. Forex markets reacted to the news connected with the U.S.
Moreover, Japan’s yen is not the only major currency that strengthened its position against the U.S. dollar. Other major currencies such as euro and British pound also have a good day.
The ongoing trade war between the U.S. and China, more precisely the latest news about the future of this dispute affected the forex markets. According to the information, Chinese officials have doubts regarding a long-term trade deal with the U.S.
Donald Trump tried to reassure the public that everything is going according to the plan. However, this news once more underlined the problems connected with this prolonged dispute.
The market skepticism is understandable because the trade war started in 2018, and it affected many sectors. U.S. and Chinese representatives reached an agreement regarding the phase one deal several weeks ago. However, it is too early to say that the trade war is over.
Forex markets on Friday
Let’s go back to forex markets and to how a look why the U.S. dollar fell on Friday.
This week, so far, the U.S. dollar declined by 0.6% against the yen. It is an interesting fact that the current decline would be its biggest weekly loss in several weeks.
Another currency that strengthened its position is China’s yuan. In the foreign market, the yuan traded at 7.0464 per dollar. At the moment, yuan is on course to reach weekly gains for a fifth week in a row.
It is worth mentioning that the dollar index against a basket of six major currencies decreased by to 97.296. It means that this week, so far the U.S. dollar fell by 0.55% against the primary currencies.