Forex Marketz Daily Forex News – Fully Markets Update
The almighty dollar gained some ground during the Asian trade session on Wednesday as Forex traders are worrying about the increased tensions between China and the United States.
China is moving ahead with proposed security laws over Hong Kong and this worry has triggered a buying of safe haven assets like the greenback.
The euro currency held gains against the dollar but the pound weakened as currency traders are waiting on the European Commission to release their financial rescue stimulus package later in the day.
The currency markets are trading in-between optimism and pessimism right now.
The dollar has gained against the British pound as the GBP/USD Forex market trading near a two week low price point at $1.2321.
The EUR/USD currency exchange rate is trading near 1.0983 which is near a weekly low price point. The USD/CHF currency exchange rate is down 0.6 percent at 0.9655.
The USD/JPY Forex market is trading in a narrow price range and, at last glance, near 107.50 yen.
Traders Support the Dollar on Rising Tensions even as Economies Open
Global economies are starting to reopen their economies, slowly, after being crippled by Covid-19 restrictions. Other traders are watching rising geopolitical tensions between the United States and China over Hong Kong.
These tensions could endanger the trade agreement negotiations as both countries look for a Phase 2 agreement.
The U.S. President, Donald Trump, has said that they will announce, sometime before the end of the week, their response to China’s planned security bill over Hong Kong.
The White House is considering sanctions against Chinese officials as both nations continue to clash over trade policy, advanced technology and China’s suggested role in the Covid-19 pandemic.
These issues could turn risk sentiment off favoring safe haven assets and bonds over equities and sentiment linked currencies. Crude oil could also come under pressure once again.
