The Japanese yen is continuing to find direction at the end of the trading week as analysts say that the currency is “undervalued.” As the market fears over the Turkish crisis dissipate, several currencies are looking to gain some momentum in this volatile environment, and one of them might be the yen.
The Chinese yuan enjoyed a great start to the trading week, but the currency quickly pared its gains on concerns over escalating trade tensions with the US. The trade fallout is also impacting the equities market as the widespread selloff are sending stocks, especially small-cap stocks, tumbling.
The US dollar gained today, emerging as the second strongest currency on the Forex market (losing only to the extremely strong yen), amid escalating trade tensions between the United States and China.
The Canadian dollar is trading sideways on Thursday as the currency attempts to find direction from a mixed bag of news. While positive economic data and higher oil prices, the US dollar strengthening and Washington nearing a trade deal with Mexico appear to have offset those gains.
The Japanese yen continued to plummet against the US dollar and a basket of other currencies. After the Bank of Japan (BOJ) maintained its ultraloose monetary policy, surprising international markets, the currency continued its sluggish performance over the last five trading sessions.
The Canadian dollar is rallying to start the trading week, benefiting from reported progress in North American Free Trade Agreement (NAFTA) negotiations and higher energy prices. The loonie may tumble later in the week as the US central bank completes its Federal Open Market Committee (FOMC) policy meeting that could signal a September rate hike.
The US dollar rallied against most other major currencies on Monday, rebounding from last week’s disappointing performance. The jump in the greenback occurred following several key economic reports and a massive selloff in US government debt holdings.
The Canadian dollar is trading lower midweek as the head of the US central bank wrapped up his semi-annual testimony on Capitol Hill on Wednesday and investors eye the latest US economic data. Analysts warn that the loonie is not expected to record any significant movement in the coming weeks until trade negotiations between Washington and Ottawa are completed.
The euro slumped on Tuesday during Federal Reserve Chair Jerome Powell’s semi-annual testimony on Capitol Hill. As Powell told the US Senate Banking Committee that continued, gradual increases to interest rates will be the desired monetary policy moving forward, the euro fell against the US dollar, adding to its steep year-to-date losses.
The euro today rallied higher amid calm global financial markets, which encouraged a risk-on mood among investors boosting the single currency. However, the euro gave up some of its gains against the US dollar following the release of mixed US retail sales data in the early American session.
