Following its decline after the FOMC this month, the dollar is showing some signs of improvement. However, today the antipodean currencies are experiencing the most negative impact. This is likely due to the recent rate cuts in China and the weakening of the yuan. The market remains cautious and this sentiment is expected to endure during the European trading period until Wall Street resumes after the long weekend.
When studying the important currencies, the loss of value of the yen persists as shown by USD/JPY rising above 142.00 today. Although Japanese officials have made verbal statements, they are not too concerning at the moment. It is worth noting that some parts of the market are anticipating stronger interference near 145.00.
There isn't much scheduled for later in Europe, with only German producer prices and Eurozone current account balance being the noteworthy announcements. This will likely cause investors to reflect on the events of the beginning of the week, which could indicate that the decline of the dollar and rise in equity may be reversing before the end of the month or quarter.
At 6:00 AM Greenwich Mean Time, there will be the release of Germany's May Producer Price Index figures. At the same time, Switzerland's May trade balance data will also be published. At 8:00 AM GMT, the Eurozone's April current account balance will be revealed, and at 9:00 AM GMT, the Eurozone's April construction output will be announced.
The session is now concluding. I hope your future days are filled with success and prosperity in your trading endeavors. Take care and stay safe.
