US Dollar Remains In Negative Area

In Asia Pacific money market trading until today afternoon, the general US dollar or greenback is still moving very lightly when the market has seen that the US dollar still seems to be seen continuing the correction side when the US financial markets are about to open again.

US Dollar Remains In Negative Area

As we know that in previous trading, the greenback condition is under pressure from some other major currencies of the world, so that causes EURUSD to close flat at the level of 1.1656, GBPUSD closed up at 1.3227, AUDUSD closed down at 0.7378 and USDJPY closed down at 110.42.

And for a while this morning, EURUSD is moving at the 1.1660 level, GBPUSD move at 1.3227, AUDUSD at 0.7376 and yen at 110.31.

In earlier trading, the US dollar index traded declines after a war-torn trade situation intensified with China’s plans to also tap new US $ 34 billion worth of products this weekend. The situation ahead of the execution leaves investors skeptical of the future of the global economy, so they need safety assets for a moment ahead of the release of US employment data.

The safe-haven situation is inevitable given the temporary avoidance of US dollar-denominated assets due to the loudness of President Trump.

The discourse that the Fed could raise interest rates 2 more times this year and 4 more next year will slightly disappear during a holiday in US financial markets overnight. Investors see that about $ 2.5 billion of bonds in China have defaulted and apparently the conditions of trade war began to put China’s economy on hold, prompting the Chinese government to immediately take new fiscal policy by cutting taxes to increase consumer purchasing power. In addition the PBOC will continue to oversee the liquidity of China’s financial markets, thus making the dollar index still under pressure.

Pound sterling was positive after a BoE official statement confirming that Britain’s central bank will soon raise interest rates despite the unfinished Brexit problem.

Opportunities for a strengthening dollar index are still there where a positive rhythm for the dollar index because of the 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.

The strengthening of the dollar index is also expected from some US economic data to be released today with the main focus being Fed minutes where 2 weeks ago the Fed has raised its interest rate by 25 basis points, and whether there is any continuity or not, where this could a turning point for a further strengthening of the dollar index or further weakening.

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