24 Jun 2020
Midweek, the U.S. Dollar faced intense selling pressure due to the scrapping of the January U.S.-China trade deal. The markets’ reaction left a major impact of the American dollar.
White House trade advisor Peter Navarro had previously hinted that the trade deal was “over” but was now pressured to backtrack his comments.
The Euro was higher on Tuesday, with the currency’s investors feeling better following the release of the Eurozone’s latest PMI figures.
European manufacturing and services sectors bettered expectations in June, nearing their indexes to expansion.
On the other hand, the British Pound declined yesterday, amid Boris Johnson’s decision to further ease the lockdown measures.
The Pound Sterling Australian Dollar exchange rate remained unchanged today, being traded at around 1.8060. IG’s market strategist, Jingyi Pan said, “Despite evidence of virus surges across the US, the market’s faith in reduced likelihood of the return of massive lockdowns had enabled investors to largely shrug off that concern.”
The two currencies were supported by the improvement of risk appetite as well as the Eurozone figures, released today.
“We’re still seeing the counteracting forces of the economic recovery on the one hand and concerns around the virus spreading on the other hand. But overnight the Eurozone PMIs lifted, PMIs in the UK lifted and PMIs in the U.S. lifted, so the economic story, that we are seeing the recovery, is helping to underpin the commodity currencies,” FX analyst Kim Mundy said.