The Chinese yuan is flat against most of its currency rivals at the end of the trading week, despite a new report that suggests China’s economy will buck the global trend and grow this year. China recently kickstarted its economic rebound, but early data indicators highlight that Beijing’s efforts are only producing a slow recovery.
The Turkish lira is weakening against many of its currency competitors midweek as the government auctions millions in T-bills to keep the government’s finances afloat. The lira, which has come under enormous pressure this year, has stabilized over the last month. But a mix of a financial crisis and the coronavirus pandemic has impacted Turkey’s fragile economy.
The US dollar is struggling for direction on Tuesday as the stock market rallies. Investors are weighing multiple events unfolding, including the Federal Reserve Chair’s semi-annual congressional testimony, strong May retail sales figures, and a spike in equities. It has been a roller coaster ride for the greenback in recent weeks as volatility and uncertainty have returned to global financial markets.
The Chinese yuan is slightly weakening ahead of Beijing’s auction of one trillion yuan ($141 billion) in special treasury bonds to help cover the cost of combating the coronavirus pandemic. Investors are all eyes on the event to see how it would impact market liquidity. Mixed economic data are also affecting the yuan’s performance against currency rivals to start the trading week.
The euro today posted gains against the US dollar earlier in the session buoyed by investor sentiment amid optimism about the economic recovery in Europe. The EUR/USD currency pair later gave up its gains as the greenback rallied amid the risk-off market environment as most European equities sold off at the open and headed lower.
The Sterling pound today fell briefly after the release of the latest UK GDP data early London, but quickly recovered as other prints came in better than expected. The GBP/USD currency pair rallied to new highs after investors digested the multiple macro releases from the UK docket, one of which beat analysts estimates.
The euro today traded both higher and lower against the US dollar driven by shifting market dynamics in favour of each other over sustained periods. The EUR/USD ended up trading flat after falling and rising severally primarily driven by investor sentiment amid a mostly empty European docket.
The South Korean won is trading flat against its currency rivals on Thursday as investors weigh the central bank’s decision to cut interest rates to an all-time low. Policymakers warned that the economic fallout from the coronavirus pandemic would be worse for South Korea than the global financial crisis a decade ago. But while it looks like Seoul has the public health crisis under control, officials have been […]
The Hungarian forint is strengthening on Tuesday as the central bank left interest rates unchanged and confirmed that it would not be ultra-aggressive in its quantitative easing efforts as its global counterparts. The institution’s decision left investors with the impression that Hungary’s economy could withstand the global fallout from the coronavirus pandemic.
The Brazilian real is extending its rebound on Tuesday, despite a myriad of economic and fiscal pressures weighing on the South American country. The economy has been reeling as the nation has become a coronavirus hotspot, prompting the US government to impose a travel ban. But could the commodities-rich nation survive the pandemic?
