Foreign exchange market today 24/6: USD depreciation along with positive signs on economic growth
admin 24-06-2020, 23:17

The foreign exchange market today showed that the US dollar was falling, the euro was appreciating due to positive signals from PMI data globally.

Today (June 24), at 18:13 Vietnam time, 6/10 currency pairs rose and the other 4 dropped.

Exchange rate of 10 base currency pairs. (Source: Investing.com)

In particular, the USD / CAD pair has the highest increase of 0.2% and the NZD / USD pair is the strongest decline with a decline of 0.82%.

Daily price fluctuations of currency pairs. (Source: Investing.com)

Daily Currency Heat Map. (Source: Investing.com)

USD and Pound decreased while Euro increased

According to Investing.com, today (June 24) at the beginning of the session in Europe, the US dollar depreciated investors who were looking for a more risky currency. It seems that the market is paying attention to the signs of economic growth instead of increasing number of COVID-19 cases.

At 14h10 Vietnam time, the USD Index, used to measure the strength of the greenback against the basket of 6 major currencies, fell 0.1% to 96,595 points, from the previous higher level at the beginning of the week was 97,719 points.

In contrast, EUR / USD rose 0.1% to 1,1322, after hitting a low of 1.1167 on Monday. Meanwhile, the USD / JPY exchange rate increased by 0.1% to 106.60, escaping the hit low of the past 6 weeks recorded earlier this week.

The reason for these fluctuations is in part because the European, UK and US PMI data released yesterday surpassed expectations.

Analysts at Danske Bank said: “Positive global PMI data is the key to boosting the EUR / USD exchange rate to 1.1330.” They also added: “These data are still showing unexpected positive signals that macroeconomics brings. In our opinion, these will be enough to drive the US dollar to weaken for a long time. We expect the level of 1.15 in the next three months. ”

In addition, data on the record number of COVID-19 infections has increased worldwide and a number of states in the US are also a basis for market review.

Amid concerns that the British government is reopening the economy too soon, the pound is currently trying hard to make a profit against the US dollar.

Yesterday (June 23), British Prime Minister Boris Johnson announced that pubs, restaurants, movie theaters and hair salons in the UK could reopen starting July 4. 4 UK territories have their own rules about health issues.

However, both the British government science advisor, Patrick Vallance and the British Medical Director, Professor Chris Whitt, insisted that Johnson’s plan was not flawless and risk-free.

In addition, several influential medical leaders have signed an open letter published today (June 24) in the British Medical Journal to warn that the UK will indeed be at risk to be caught in the wave of COVID-19 infection again.

Source: vietnambiz.vn

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