The US dollar is recovering slightly from its decline after the FOMC meeting earlier this month. The currencies of Australia and New Zealand are most affected today. This is due to a decrease in the value of the Chinese yuan, which was caused by the recent rate cuts made in China. The market sentiment is uncertain, and this is expected to continue during European trading until Wall Street resumes after the long weekend.
The weakening of the yen against major currencies persists, and today the USD/JPY exchange rate has risen above 142.00. Despite some verbal arguments from Japanese officials, there is no reason to worry yet. Some market analysts anticipate stronger intervention by officials around the 145.00 mark.
Later in Europe, there won’t be many significant events, with only German producer prices and Eurozone current account balance being notable releases. As a result, markets will likely reflect on the actions taken earlier this week, which could indicate that the decline of the dollar and gains of equity may be reversing before the end of the month/quarter.
At 6:00 am GMT, there will be the release of Germany’s May Producer Price Index information. At the same time, Switzerland’s May trade balance data will also be made available. At 8:00 am GMT, the Eurozone’s April current account balance will be published. Lastly, at 9:00 am GMT, the Eurozone’s April construction output will be released.
We have come to the end of this session. I hope you have a prosperous future and successful trading endeavors. Be cautious while you’re out there.
