Greenback rebounds from its weakening level, Gold Price Still Holding
Previously, the Greenback movement weakened due to the BOJ’s policy. However, in yesterday’s market trade, the US Dollar currency tried to rebound. The support of the US Dollar strengthening came from the release of positive US economic data overnight. The US Dollar Index (#DXY) had plummeted to 103.90, but this morning bounced back to 104.10. The chances of the US Dollar strengthening will continue if the data later tonight is good Final GDP and Unemployment Claims.
Euro Weakened Again
The strengthening of the US Dollar weighed on the movement of the Euro. In addition, the release of negative European economic data also weakened the Euro. The data is German Gfk Consumer Climate. The chances of euro weakness will continue amid the mighty US dollar.
Pound Sterling Under Pressure
The weakening of the Pound sterling currency occurred again, especially after the US Dollar continued its strengthening. Another pressure also came from the release of negative UK economic data. The data is Public Sector Net Borrowing which was released higher than previously.
Gold Price Still Holding at US $1820s
The increase in gold prices seems to continue to occur, especially after the physical buying of gold by market participants. The range of gold price movement is still at the level of the 1820s. Keep in mind that last week’s range was the highest at the level of 1824 while in yesterday’s market trade it touched the level of 1823.76. The opportunity to increase gold prices will still occur amid safe haven assets starting to be in demand after the BOJ policy.
Commodity Prices Support the Aussie
The rise in prices of Australia’s leading commodity has supported the strengthening of the Aussie currency. The commodity materials in question are iron ore and copper.
China’s Stimulus Package Pushes Up Hang Seng Index.
The information that the Chinese government will disburse a stimulus package in the face of an economy that has slumped due to Covid-19 cases, has encouraged the movement of the Hangseng stock index to rise. The good results of the Wall Street stock exchange also supported Hangseng’s gains.
Yen Weakens Temporary, Supports Nikkei Up
There has been a weakening in the Yen currency, although limited, and this has supported Nikkei to rise. Other support also came from the positive U.S. stock market overnight.