Dollar was slipped again yesterday morning in Asia. However, that currency is still on its highest level in seven weeks. For your information, that United States currency is the advantage receiver of the sold Euro action last night in the market.
That was happened after the COVID-19 lockdown in that continent causing the decline of consumers’ purchase. It is reasonable since the condition really limits most of the aspects globally. One of them is the forex and currency pair sector.
The index of USD that tracks the Greenback was slightly slipped down for about 0.15%. That is becoming 90,890 right now. Another pair, USD / JPY also increases slightly at around 0.03%. That reaches the level of 104.94. Below is the further information and data.
Prices Change in the Global Market
Besides the pairs above, some other are also experiencing a change. One of them is AUD / USD which rises slightly for 0.09%. It reaches the level of 0.7625 with AUD has more risks of rebound from a decline which was happened for two days.
The Reserve Bank of Australia maintains its interest rate. The amount is steady and still in 0.10%. That condition is like what people hoped. That is why; it becomes the great news for everyone, especially the market participants globally.
The NZD / USD pair is also up for about 0.27% and reaching 0.7175. Elsewhere, the same trend is also happened to the GBP / USD. Based on the data, this pair increases 0.21% and then becomes 1.3689. There is a strong reason for this kind of situation.
That reason is the wise decision made by the Bank of England. The decisions are not released yet, but many parties quite sure that it will be great and effective. Based on the rumor, that Bank will share the decisions made on Thursday.
Euro Reaches Its Lowest Level
In the other places, Euro slipped down and on its lowest level so far. It could be the worst position in two and a half weeks. That was happened last night as a reaction to the Germany retail purchase number which is so disappointing.
The retail sales experience a contraction for 9.6% from month to month. It also grows 1.5% from year to year in December. That data is far from what people are expected. They thought that the contraction is in 2.6% and 5% for the growth.
For your information, Europe is still experiencing the impact of second wave COVID-19 infection. They are also trying to survive and beat the virus by the vaccine release. Disorder in correlation happened to Euro and a sentiment may appears.
That sentiment will push the direction of Dollar in a short-term period. When someone thought about selling Euro, he will have a slight option of purchasing dollar. It is because the Euro-Dollar exchange rate can be easily becoming the liquid one.
Global Sentiment Stays Cautious
The global sentiment stays cautious because investors are still considering about the last week market volatility. That volatility was triggered by the stocks such as GameStop Corp. They also evaluate the selling action of 7% in 2020 exceeding the expectation.
The global pandemic recovery amidst the huge fiscal expenses and the ultra-spacious monetary policy will be continued this year. In the United States, the investor sentiment is focused on a very productive two hours meeting between Joe Biden and 10 republic senator.
They discussed about the right stimulus to launch. However, Biden stated that the $ 618 billion package which is recommended by that group is not enough to solve the COVID-19 crisis. Many parties wat to still maintain the price tag of $ 1.9 trillion for the stimulus.
