© Reuters The Australian dollar rose the most and the euro lost the most among currencies!
Arabictrader.com – It recorded a significant increase during currency market transactions today, Tuesday, and the major currencies rose the most by an estimated rate of about 1.76%, then it was followed by gains amounting to 0.87%, as the two currencies benefited from the improvement in risk appetite in the currency markets today, after reports that the authorities China is considering pushing a stimulus package to stabilize the faltering stock market.
Reports added that Chinese policymakers are seeking to raise about 2 trillion yuan, most of it from the external accounts of Chinese state-owned companies, as part of a stabilization fund to buy local stocks through a linkage mechanism with the Hong Kong Stock Exchange, and these reports had a positive impact on Australian currency trading. The New Zealand currency is supported by the improvement in risk appetite in the currency markets, as well as in light of the close trade relations between China and Australia on the one hand, and China and New Zealand on the other hand. Therefore, any positive Chinese developments will have a positive impact on the movements of the two commodity currencies.
After that, slight increases were recorded during currency market transactions, at a rate estimated at about 0.38%, despite the issuance of the Bank of Japan’s decisions to keep the monetary policy and the negative interest rate unchanged, but the statements of the Governor of the Bank of Japan, in which he pointed out that the growth of inflation and, as well as, the negative impact On the Japanese economy, it strengthened currency market expectations that the bank was about to abandon the monetary easing policy soon, and this provided support for the Japanese yen against other currencies.
On the other hand, both the Canadian dollar and the US dollar recorded slight declines during currency market transactions, with losses estimated at approximately 0.03%, 0.30%, and 0.31%, respectively, in light of the absence of important data affecting the trading of these currencies today, and awaiting further developments in the coming days before… These currencies are taking a clear direction, especially the US dollar, which is awaiting the release of the US Federal Reserve’s preferred inflation data at the end of this week.
After that, it recorded noticeable losses of up to 0.60%, affected by the improvement in risk appetite in the currency markets after reports that talked about Chinese plans to support the faltering stock sector, as the rescue plan indicates the Chinese government’s increasing concern about the decline in the stock market and its impact on the economy, and therefore, The anticipated plan may contribute to supporting Chinese economic growth this year, which in turn will support global economic growth and make investors more appetite for risk and move away from safe currencies, especially the Swiss franc.
In last place on the list of losing currencies comes the euro, with losses of 1.76%, as markets await the issuance of the European Central Bank’s decisions this week, and expectations are strengthened that the European Central Bank has ended the monetary tightening cycle and will not raise interest rates again, and may set the first date during its upcoming meeting. To begin to reduce, this had a negative impact on euro trading in the currency market.
2024-01-23 13:49:00
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