With the Euro rising and Yen falling by narrow margins, the US dollar seems to be achieving near level price ranges, even as the coronavirus pandemic is taking down worldwide economies into a whirlpool.
The British pound or sterling, has moved up in a narrow range against the USD but still lagged behind the euro, which continues an upward trend due to an improved German outlook on the economy.
The Yen continues to weaken even as most Asian currencies improve amid speculated recovery in the coming days, due to some high risk, volume, and price stock trading. However, the yuan does not look any promising in the near future owing to recent worldwide developments, which are particularly not in favor of China.
Global currencies have generally taken a hit across the derivatives market and have also impacted the prices of cryptocurrencies, which have seen large trade volumes in recent weeks, owing to panic created by the pandemic.
While investors await the right moment to make critical market decisions on currencies, experts say that recovery expectations are supporting the USD. On the other hand, the Australian dollar and the Swiss franc are seeing upward movements.
However, investors remain cautious against the AUD due to recent and sudden surges in infections leading to the closure of some state borders. And yet, they are surprisingly hopeful about yen and yuan despite a slowed down manufacturing environment, which is but compensated by high trade volumes, and diplomatic tensions of China.
Changing manufacturing cycles, adoption of flexible work policies by companies in most industry segments, and an overall expectation of a financial rebound are factors that hold the reigns of the economy strong in the current situation.
source : forexnews صخقمي