US Dollar Negative Sentiment Still Continues
In Asia Pacific money market trading as of late afternoon today, the general US dollar or greenback is still moving very lightly when the market has seen that the US dollar still seems to want to continue its correction side when the US financial markets are off.
As we know that in yesterday’s trading, the greenback condition was under pressure from some other major currencies in the world, thus causing EURUSD to close higher at 1.1657, GBPUSD closed up at 1.3189, AUDUSD closed up at 0.7386 and USDJPY closed down at the level of 110.55.
And for a while this morning, EURUSD is moving at the level of 1.1669, GBPUSD move at 1.3204, AUDUSD at 0.7394 and yen at 110.28.
In earlier trading, the US dollar index traded worse again after the European Union again muted the situation in line with the compromise that took place in the German coalition cabinet so that the threat of division and acceleration of German elections will not happen and make the euro back quiet again with longer positions.
The problem of migrants in Europe became the main topic of discussion in the EU Summit last week, as the region was flooded with refugees from Asia and Africa, causing problems of funding that made some difficulties as well as security issues.
The discourse that the Fed could raise interest rates 2 more times this year and 4 more next year will slightly disappear ahead of a holiday in US financial markets today. Investors took profit taking for a moment as $ 2.5 billion of bonds in China suffered a default. Apparently the conditions of trade war began to keep the Chinese economy depressed, making the Chinese government immediately take new fiscal policy by way of tax cuts to increase consumer purchasing power.
Pound sterling itself could improve after some BoE officials said that the UK central bank will soon raise interest rates despite still not finished Brexitnya problem.
Opportunities for the strengthening of the dollar index are still there where the positive rhythm for the dollar index which previously also strengthened due to unfinished trade war discourse. The conditions of trade war between the US and China and the European Union, where the emergence of new tariffs can make the price of goods in the US will rise so that inflation will rise and needed increase in interest rates the Fed, and make the dollar index continues to strengthen.