[ad_1]
The sell off of tech stocks on Thursday (3) prompted investors to turn to safe haven currencies. The US dollar fell slightly, the yen and the Swiss franc strengthened one after another. The European Central Bank (ECB) was concerned about the appreciation of the euro and the euro fell against the trend. .
On Wednesday (2), the US dollar index, which measures the US dollar against six major currencies, fell 0.07% to 92.770, but was still 1.12% higher than the 28-week low reached the Tuesday.
Affected by weak economic data, investors are pessimistic about the prospects for recovery. On Thursday, Apple, Amazon, Microsoft and Google’s parent company Alphabet faced a huge sell-off, dragging down Wall Street’s major stock indices and causing the worst slide since June.
According to analysts at Action Economics, the stock market crashed and US bond yields fell. Based on these negative risks, the risk-sensitive US dollar fell to a low of 106.02 against the yen.
The US dollar was basically flat against the euro on Thursday. As investors lowered their bets on the US dollar and were concerned that the European Central Bank would sell the euro due to the appreciation of the euro, the euro rose to a new high in a week in early trading.
The U.S. Department of Labor announced Thursday that, as of August 29, the number of people receiving unemployment benefits dropped to 881,000, which was below the market expectation of 950,000, and the number of Ongoing unemployment benefits fell to 13.25 million. Higher-than-expected unemployment claims may add upward momentum to the dollar.
Ian Lyngen, Head of US Interest Rate Strategy at BMO Capital Markets, said: “Due to seasonal adjustments, we are unable to compare the number of initial picks this time with previous data.”
However, Wells Fargo analysts noted that the unexpected decline in the number of initial jobless claims is not a sign of a recovery in the job market, because the number of initial and renewal jobless claims remains high. As the epidemic continues, the government’s financial support expires. The labor market recovery momentum is slowing.
The market is waiting for the August non-farm employment and unemployment rate report to be released on Friday. Analysts predict that the unemployment rate will drop from 10.2% in July to 9.8% this month.
In August, the PMI for the euro zone was 51.6, and the Financial Times reported that policymakers at the European Central Bank are concerned that the euro will appreciate further, which could contain inflation. and the competitiveness of exports.
Philip Lane, chief economist at the European Central Bank, said on Tuesday that the exchange rate of the euro against the dollar is crucial for monetary policy-making, and these comments led to the euro falling below US $ 1.2. .
Kenneth Broux, a currency analyst at Societe Generale, hinted that the European Central Bank is paying close attention to inflation. Analysts believe that the euro against the dollar should fall below 1.1760 in the short term to continue the recovery of the dollar and affect market risk sentiment.
MUFG currency analyst Lee Hardman believes the European Central Bank is unlikely to introduce policies to weaken the euro’s rise, and is more likely to rely on the government to persuade it to curb the euro’s strength.
Vasileios Gkionakis, global head of foreign exchange strategy at Lombard Odier, said: “We are entering a stage where the European Central Bank may intervene in the appreciation of the euro, but … I have serious doubts about this because it may devalue the euro significantly. “.
Recent gains in the US dollar caused the pound to drop to a six-day low of $ 1.3263 against the US dollar, and the Norwegian krone fell 0.5% to $ 8.90. Swiss Krona also followed up.
The pound fell 0.55% against the US dollar on Friday at US $ 1.3279, still close to the intraday low of US $ 1.3243.
The pound has fallen for two consecutive days. With comments that the Bank of England may implement negative interest rates to support the economy, the pound is expected to make its third week of gains. The governor of the Bank of England also warned that the second wave of the epidemic is slowing the pace of the recovery, leaving key parts of the economy still far below normal.
The Bank of England will announce its MPC monetary policy report on September 17.
Prices as of Friday (4) at 5:00 Taiwan time:
The dollar index reached 92,770. -0.07%
The exchange rate of the euro against the US dollar stood at US $ 1.1852 per euro. -0.01%
The pound-to-dollar exchange rate reached $ 1.3278 per pound. -0.55%
The exchange rate of the Australian dollar to the US dollar was from AU $ 1 to US $ 0.7375. -0.88%
The exchange rate between the US dollar and the Canadian dollar was C $ 1.3073 per US dollar. -0.64%
The dollar-yen exchange rate reached 105.98 yen per dollar. + 0.00%
[ad_2]
