• Asian session review: the dollar declined against the euro and pound

Market news

2 July 2020

Asian session review: the dollar declined against the euro and pound

TimeCountryEventPeriodPrevious valueForecastActual
01:30AustraliaTrade Balance May7.8398.025
06:30SwitzerlandConsumer Price Index (MoM) June0.0%0.1%0.0%
06:30SwitzerlandConsumer Price Index (YoY)June-1.3%-1.2%-1.3%


In today's Asian trading, the us dollar declined against the euro and pound and changed little against the yen.

The FOMC meeting minutes remained in the focus of market participants' attention. The minutes reported that many of the FOMC members said that at future meetings, the Fed could give more details about its plans for future monetary policy decisions.

In addition, Fed leaders discussed in detail the possibility of using a monetary policy tool last used during world war II - controlling the yield curve. The instrument, which is used, in particular, in Japan and Australia, assumes that the Central Bank maintains the yield of Treasury bonds at target levels by buying and selling them on the market.

However, almost all participants in the June FOMC meeting said that many questions remain about the costs and benefits of such an approach.

On Thursday, traders expect the release of data from the US Department of labor on the country's unemployment rate in June and the number of Americans who first applied for unemployment benefits last week.

The pound rose against the US dollar. Yesterday's data on the British manufacturing index continued to support the pound. In addition, investors continue to monitor the next round of negotiations between London and Brussels on a trade agreement after the UK leaves the EU.

The ICE Dollar index, which shows the value of the us dollar against six major world currencies, fell by 0.18% compared to the previous day.

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