Safe-haven currencies such as the yen and the Swiss franc are under pressure on Monday morning amid expectations from politicians of new incentives that could reduce investors concerns about a slowdown in the global economy.
Safe-haven currencies such as the yen and the Swiss franc are under pressure on Monday morning amid expectations from politicians of new incentives that could reduce investors concerns about a slowdown in the global economy.
Such hopes found support in China's central bank interest rate reform, which is expected to lower the cost of corporate loans, as well as reports of new tax incentives in Germany.
However, investor optimism is likely to be limited by the expectation of the US decision today whether to continue to allow Chinese Huawei Technologies to purchase components from US companies.
According to economists, the decision on Huawei will be a serious test of checking the real state of Sino-US sentiment regarding the continuation of the trade war, and hence the preservation of currency risks.
The US currency index rose slightly this morning - at 98.201, located near the two-week high of 98.339, reached last Friday.
Against the Japanese yen, the dollar also did not change much and is trading at 106.37 yen, near a weekly high of 106.98 yen.
The yen and Swiss franc, which are usually bought as a refuge during times of economic uncertainty, slightly fell on Monday compared to other currencies.
The U.S. dollar rose to 0.9795 Swiss francs, peaking in almost two weeks. EURCHF also rose by 0.2% to 1.0865 Swiss francs.
The Australian dollar rose to 72.12 yen. Gold, another safe-haven asset, fell by 0.3% in the spot market, to $ 1,508.40 per ounce.
The People's Bank of China announced a key interest rate reform on Saturday to help lower borrowing costs for companies and support the national economy that has been hit by a trade war with the United States.
At the moment, the continental yuan is trading at 7, 0447, the offshore has grown by 0.2% to 7.0577 yuan per US dollar.
The single European currency is currently trading at a slight increase at the level of 1, 1096. The Euro, therefore, won back a significant part of last week’s losses caused by the new political crisis in Italy, where the right-wing League of the North called for new elections, which caused large-scale sale of Italian assets.
GBPUSD is trading slightly down at 1, 2135.
AUDUSD: Buy. Entry point – 0, 6779. Take profit – 0, 6795. Stop Loss – 0, 6752.
USDJPY: Buy. Entry point – 106, 34. Take profit – 106, 66. Stop Loss – 105, 79.
USDCHF: Buy. Entry point – 0, 9792. Take Profit – 0, 9816. Stop Loss – 0, 975.
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