The Greenback Has Continued to Lose Ground. RBNZ Has Kept Interest Rate Unchanged

June 24, 2020

by JustForex

The US currency is declining against currency majors amid growing demand for risky assets. The US dollar index closed in the red zone (-0.39%). In general, investors are counting on economic recovery in the world and have started paying more attention to economic releases. At the same time, the daily increase in the number of cases on COVID-19 continues to impact financial markets negatively.

The single currency is growing after the publication of encouraging economic data. German Manufacturing PMI rose in June and counted to 44.6 instead of 41.5. Markit Composite PMI also rose in June and counted to 47.5 instead of 42.4.

The British pound is growing amid the release of positive news and strong economic data. So, yesterday, Prime Minister Boris Johnson announced that restaurants, cafes, cinemas and hairdressers in England would reopen on July 4. However, several leaders in the healthcare sector still consider such actions to be hasty and are convinced that there is a “real risk” of the second wave of COVID-19 in the UK. A number of optimistic releases on economic activity in the UK support the British pound.

Today, in the Asian trading session, a meeting of the Reserve Bank of New Zealand has been held. During the meeting, the regulator left the key interest rate unchanged at 0.25% per annum.

The “black gold” prices have been declining. At the moment, futures for the WTI crude oil are testing the $39.70 mark per barrel. At 17:30 (GMT+3:00), US crude oil inventories will be published.


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Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.46%), #DIA (+0.45%), #QQQ (+0.85%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 0.70-0.71%.

The news feed on 2020.06.24:
  • At 11:00 (GMT+3:00), the German IFO business climate index will be published.

by JustForex

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