The British pound today rallied higher against the US dollar even after the Bank of England Governor Mark Carney took a slightly dovish tone in his speech. The US dollar was largely weaker against its main peers, which also fueled the rally amid lackluster data reported from the US docket.
The AUD/USD currency declined significantly today to reverse the bullish trend that the currency pair has enjoyed since the beginning of the year. This was a major reversal from the currency pair’s rally witnessed yesterday after the release of positive Australian employment data for the month of January.
The US dollar dropped against its major peers on Monday, the first trading day since Donald Trump’s inauguration last Friday, as traders remained uncertain towards the president’s economic plans. The greenback’s drop opened a window for the British pound to reach its strongest level in a month.
The Brazilian real failed to gain against the US dollar today even after the release of helpful retail sales data. The strength of the greenback and the report from the International Monetary Fund were the reasons for the currency’s underperformance.
The US dollar has experienced an abysmal week at the end of March and enters April with a bias that can be defined as bearish. But does it mean that the currency is going to extend its decline further?
The Chinese yuan was little changed against the US dollar today after the International Monetary Fund decided yesterday to include the currency in its basket of currencies that make up the Special Drawing Right (SDR).
Many experts and policymakers are watching today for the announcement that the Chinese yuan (also called the renminbi) will be added to the IMF’s Special Drawing Rights basket.
The Chinese yuan dropped against the US dollar today as the Chinese stock market crashed after regulators expanded their probe on brokerage firms.
According to Chinese leaders, the time has come for a freely traded Chinese yuan. An announcement made today indicates that the Chinese are ready to let the yuan trade freely by 2020.
Aussie is heading lower right now, thanks in large part to uncertainty and risk aversion. Lower stocks and commodity losses earlier are contributing to a lower Australian dollar right now.
