This is what you need to know to operate today Friday, June 20:
He US Dollar (USD) He has difficulty finding demand on Friday, since the market approach focuses on geopolitics after the meetings of this week’s central banks. In the second half of the day, the retail sales of May of Canada and the preliminary confidence of the June consumer of the Eurozone in the economic calendar will be highlighted.
US dollar price this week
The lower table shows the percentage of the US dollar change (USD) compared to the main currencies this week. American dollar was the weakest currency against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.22% | 0.73% | 0.58% | 0.89% | 0.13% | 0.41% | 0.52% | |
| EUR | -0.22% | 0.39% | 0.35% | 0.68% | 0.03% | 0.20% | 0.31% | |
| GBP | -0.73% | -0.39% | -0.02% | 0.28% | -0.36% | -0.19% | -0.09% | |
| JPY | -0.58% | -0.35% | 0.02% | 0.31% | -0.74% | -0.52% | -0.46% | |
| CAD | -0.89% | -0.68% | -0.28% | -0.31% | -0.68% | -0.47% | -0.37% | |
| Aud | -0.13% | -0.03% | 0.36% | 0.74% | 0.68% | 0.17% | 0.27% | |
| NZD | -0.41% | -0.20% | 0.19% | 0.52% | 0.47% | -0.17% | 0.10% | |
| CHF | -0.52% | -0.31% | 0.09% | 0.46% | 0.37% | -0.27% | -0.10% |
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 caution posture of the Federal Reserve (FED) on the flexibility of the policy and atmosphere of risk aversion in the market helped the USD overcome their rivals early on Thursday. However, after reaching its highest level in a week above 99.00, the USD index lost traction and was last fluctuating around 98.60.
The markets became aES-Risk on Thursday due to reports that hinted at a direct participation of the United States (USA) in the Iran-Israel conflict. Later on the day, the president of the US Senate Intelligence Committee said President Donald Trump said Iran will give Iran the last chance to reach an agreement that ends its nuclear program. Trump decided, according to reports, that he would delay his final decision on the launch of attacks for up to two weeks. Although Israel and Iran continue to exchange attacks, this development seems to help markets to breathe a sigh of relief.
During the Asian negotiation hours, the Popular Bank of China (PBOC), the Central Bank of China, announced that it maintained the preferential loan rates (LPR) to a year and five years without changes in 3.00% and 3.50%, respectively.
Japan data showed early Friday that the National Consumer Price Index rose 3.5% year -on -year in May, after the 3.6% increase recorded in April. Meanwhile, commenting on commercial conversations with the US, the main commercial negotiator of Japan, Ryosei Akazawa, said Japan will not be fixed on the imminent date so that the so -called reciprocal tariffs return to higher levels. “We are looking for the possibility of an agreement in negotiations at the ministerial level, but the perspective remains uncertain,” Akazawa added. After closing in positive territory on Thursday, USD/JPY It fluctuates in a narrow channel slightly below 145.50 on Friday.
The United Kingdom National Statistics Office reported Friday that retail sales fell 2.7% in monthly terms in May, compared to market expectation of -0.5%. On Thursday, the Bank of England (BOE) announced that it maintained the policy rate without changes in 4.25%, as expected. After registering small profits on Thursday, GBP/USD He has difficulty gathering bullish impulse and listed below 1,3500 early Friday.
After the undecided action on Thursday, Gold It is kept under bearish pressure on Friday morning and trades at its lowest level in a week below $ 3,350.
EUR/USD It remains stable above 1,1500 in the early European session on Friday after bouncing from the weekly minimum that established below 1,1450 on Thursday.
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.
