Next, what you need to know on Wednesday, April 23:
He US Dollar (USD) He recovered strongly on Tuesday, with the USD index winning more than 1% in the day. S&P Global will publish the preliminary data of the purchasing managers index (PMI) of manufacturing and services for Germany, the Eurozone, the United Kingdom and the United States on Wednesday. The markets will also pay close attention to the comments of the central bankers.
US dollar price this week
The lower table shows the percentage of the US dollar change (USD) compared to the main currencies this week. US dollar was the strongest currency against the Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.09% | -0.18% | -0.26% | -0.23% | -0.55% | -1.05% | 0.63% | |
| EUR | -0.09% | -0.42% | -0.40% | -0.37% | -0.82% | -1.19% | 0.53% | |
| GBP | 0.18% | 0.42% | 0.21% | 0.06% | -0.41% | -0.76% | 0.95% | |
| JPY | 0.26% | 0.40% | -0.21% | 0.02% | -0.39% | -0.64% | 0.94% | |
| CAD | 0.23% | 0.37% | -0.06% | -0.02% | -0.43% | -0.81% | 0.89% | |
| Aud | 0.55% | 0.82% | 0.41% | 0.39% | 0.43% | -0.33% | 1.33% | |
| NZD | 1.05% | 1.19% | 0.76% | 0.64% | 0.81% | 0.33% | 1.75% | |
| CHF | -0.63% | -0.53% | -0.95% | -0.94% | -0.89% | -1.33% | -1.75% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
The decrease in fears on the loss of independence of the Federal Reserve (FED) allowed the market mood to improve in the American session on Tuesday.
The president of the USA, Donald Trump, said at a press conference that he had no intention of saying goodbye to the president of the Fed, Jerome Powell, despite being frustrated with the high interest rates. “The press echoes things. No, I have no intention of saying goodbye. I would like to see him a little more active in terms of his idea of ​​lowering interest rates,” Trump said. As for commercial negotiations with China, he said they were doing well and added that he believes they will reach an agreement.
Reflecting the positive market environment in terms of risk, the main Wall Street rates gained more than 2.5% on Tuesday. In Wednesday, the futures of US stock indexes rise between 1.3% and 2%, while the USD index remains in negative territory above 99.00. Later in the day, the Fed will publish its book Beige.
After reaching a new historical maximum of 3,500 $ on Tuesday, Gold He reversed his address and closed the day below $ 3,400. The Xau/USD extends its correction in the European morning and was last losing more than 2% in the day about $ 3,300.
EUR/USD 0.8% fell on Tuesday and erased much of Monday’s profits. After falling to 1,1300 in the Asian session on Wednesday, the PAR recovered its traction and advanced around 1,1400 at the beginning of the European session.
GBP/USD It fell below 1,3250 early Wednesday after closing in negative territory on Tuesday. The pair managed to register a rebound and advanced beyond 1,3300 in the European morning, erasing their daily losses in the process.
After falling to its weakest level since September below 140.00 in Tuesday, USD/JPY He reversed his direction and closed the day with a gain of approximately 0.5%. The pair remains stable above 141.50 in the European session.
FAQS risk feeling
In the world of financial jargon, the two terms “appetite for risk (Risk-on)” and “risk aversion (risk-off)” refers to the level of risk that investors are willing to support during the reference period. In a “Risk-on” market, investors are optimistic about the future and are more willing to buy risk assets. In a “Risk-Off” market, investors begin to “go to the safe” because they are concerned about the future and, therefore, buy less risky assets that are more certain of providing profitability, even if it is relatively modest.
Normally, during periods of “appetite for risk”, stock markets rise, and most raw materials – except gold – are also revalued, since they benefit from positive growth prospects. The currencies of countries that are large exporters of raw materials are strengthened due to the increase in demand, and cryptocurrencies rise. In a market of “risk aversion”, the bonds go up -especially the main bonds of the state -, the gold shines and the refuge currencies such as the Japanese yen, the Swiss Franco and the US dollar benefit.
The Australian dollar (Aud), the Canadian dollar (CAD), the New Zealand dollar (NZD) and the minor currencies, such as the ruble (Rub) and the South African Rand (Tsar), tend to rise in the markets in which there is “appetite for risk.” This is because the economies of these currencies depend largely on exports of raw materials for their growth, and these tend to rise in price during periods of “appetite for risk.” This is because investors foresee a greater demand for raw materials in the future due to the increase in economic activity.
The main currencies that tend to rise during the periods of “risk aversion” are the US dollar (USD), the Japanese yen (JPY) and the Swiss Franco (CHF). The dollar, because it is the world reserve currency and because in times of crisis investors buy American public debt, which is considered safe because it is unlikely that the world’s largest economy between in suspension of payments. The Yen, for the increase in the demand for Japanese state bonds, since a great proportion is in the hands of national investors who probably do not get rid of them, not even in a crisis. The Swiss Franco, because the strict Swiss bank legislation offers investors greater protection of capital.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
