The Japanese yen was weak today even though domestic macroeconomic data released on Monday was good. There was no clear theme to drive markets at the start of the week. The week should be eventful, though, with plenty of economic releases basically every single day.
The Chinese yuan is now testing its best level in more than two years against the US dollar. As China becomes the lone outlier in the global economy when it comes to the recovery, the yuan is joining the broader rally in the foreign exchange market. With the year 2020 winding down, is the next stop for the yuan 6.4? Better yet, will policymakers allow the yuan to appreciate that much?
The US dollar is weakening to start the trading week after another pharmaceutical giant announced a second effective coronavirus vaccine. The news lifted the financial markets across the board, elevating investors’ risk appetite. This led to a selloff in the greenback, almost guaranteeing that the buck is headed for one of its worst years on record.
The Indian rupee is attempting to muster up some momentum to finish the trading week amid positive economic data and improving COVID-19 cases. The rupee, which has struggled since the height of the market meltdown earlier this year, has joined the broader weakness in emerging markets. But with renewed risk appetite and a potential vaccine on the way, could the rupee enjoy a better 2021?
The Sterling pound today fell against the dollar following the release of weak UK GDP data as the country’s economy expanded less than expected in September. The GBP/USD currency pair’s decline was further fueled by the lack of progress in Brexit negotiations as the December 31st deadline draws near.
The euro today rallied against the dollar boosted by the positive investor sentiment despite the rising coronavirus cases and lockdown measures in Europe. The EUR/USD currency pair’s rally as also fueled by the positive releases from across the euro area including Germany’s inflation data among others.
The Japanese yen rallied during Friday’s trading session. Market analysts explained the rally by risk aversion ahead of the US presidential election as well as by mostly positive macroeconomic reports released in Japan over the trading session. Currently, though, the currency has trimmed its gains, losing them outright against some of its rivals.
The South Korean won is recording modest gains against multiple currency rivals on Tuesday as the nation’s economy returned to growth in the third quarter. After enduring the sharpest economic downturn in more than a decade, Seoul was able to resuscitate the economy through a series of COVID-19 stimulus measures and surging exports.
The Chinese yuan reversed its recent downward trend against the US dollar to kick off the trading week, breaking below 6.7 on positive economic data. The latest figures show that the post-coronavirus recovery is doing well, from growth to retail sales. This has Beijing anticipating that the world’s second-largest economy will be one of the few Asian countries to report growth in 2020. How will this benefit the currency?
The euro today fell against the US dollar driven the risk-off market sentiment amid rising coronavirus cases in the euro area stoking fears of more lockdowns. The EUR/USD currency pair fell to new 2-week lows as US stimulus talks stall ahead of the November 3 Presidential election as opinion polls place Joe Biden ahead of Trump.
