Forex News

The Australian dollar managed to hold its ground, trading near the opening level against its major peers, despite fundamentals that were rather unfavorable to the currency today.

The Japanese yen is posting modest gains against its US counterpart on Thursday after the Chinese government encouraged renewed economic cooperation with the world’s third-largest economy. The yen received a slight shot in the arm on various surveys that show a boost in key sectors. 

The euro today rallied higher against the US dollar from the early European session largely due to the massive pullback in global equity markets, which favored the single currency. The EUR/USD currency pair’s rally was further boosted by President Donald Trump‘s criticism of the Fed’s monetary policy position, which also contributed to the greenback’s weakness.

The Canadian dollar is trading lower against its US and European counterparts midweek. The loonie has been tumbling on lower crude oil prices and rising US bond yields that analysts fear could impact global growth. It appears that striking a new trilateral trade deal with the US and Mexico only provided short-term relief for the currency.

The British pound today rallied higher against the US dollar from the early European session as it emerged that the European Union and the UK were about to reach a Brexit deal. The GBP/USD currency pair was further boosted by the fact that the US warned China against devaluing its currency, which did not favor the greenback.

The euro rallied today but trimmed its gains against some rivals, including the Japanese yen and the Great Britain pound. The currency kept gains versus the US dollar and the Swiss franc, though.

The Japanese yen was weak across the board today as markets calmed down and the sentiment stabilized, giving traders no incentive to buy safer currencies. Positive macroeconomic data did not help the currency.

Positive macroeconomic data helped the Australian dollar to rise overnight but the currency has trimmed its gains by now, losing them outright against some of its major peers, including the US dollar and the euro.

The Canadian dollar behaved similarly to some other currencies, including the Australian dollar and the Great Britain pound, falling initially but bouncing later today.

The Japanese yen gained intraday on risk aversion but has trimmed its gains by now. Currently, the yen trades above the opening level against the US dollar, flat versus the euro, and below the opening against the Great Britain pound.