Dollar Recovers Ground on Profit Taking – 09 June 2020

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USD RecoversThe US Dollar regained higher ground against its peers during London trade on Tuesday as investors decided to do some profit taking. Nonetheless, some concerns over what the Federal Reserve Bank might do next have resulted in a higher Japanese Yen; the Fed’s two day policy meeting begins later today. For the most part, analysts don’t see the Fed making any changes to its interest rate structure, though the discussion of negative interest rates has been one under consideration. With few tools left in the toolbox, it is uncertain what course of action might be decided.

As of 11:18 am in London, the EUR/USD was trading at $1.1271, a loss of 0.1771% and off the session trough of $1.12407. The GBP/USD was also lower at $1.2647, down 0.5895%; the pair has ranged from a session low of $1.26173 to a peak of $1.27566. The USD/JPY was trading at 107.8870 Yen, down 0.4485% and off the earlier low of 107.789 Yen.

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In Asia, the Australian Dollar edged lower with the impetus being concern over the US-Sino trade feud. The Education Ministry in China warned its students that it might want to reconsider continuing their education there given the rising tensions between trading partners. Antipodean currencies, which rely on Chinese growth, were under pressure with the AUD/USD trading lower at $0.6916, down 1.14115% and the NZD/USD trading at $0.6477, down 1.1158%. Against the safe haven Japanese Yen, the situation was equally as bad with the AUD/JPY trading at 74.651 Yen, a loss of 1.8254% and the NZD/JPY lower at 69.921 Yen, down 1.5489%.

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