On Monday, the 28th of January, 2019, the American dollar took a nosedive against a gauge of global currencies including the major currencies such as Euro, Swiss Franc & Japanese Yen, as investors had been found selling the dollar, bracing for a US-China trade talk impact and a Fed policy decision, due later this week, which is likely to be downbeat, amid outcry on Wall St.
and mounting corporate debts. While this report is being prepared, Jan. 28th, GMT. 20.30, the American dollar is being traded slightly higher, while the day’s earlier trade had experienced a dwindling.
The Euro was 0.20 percent higher to $1.1426 against American dollar and the Japanese Yen secured a gain of 0.16 percent to 109.36 Yen, while the Swiss Franc was 0.13 percent up to 0.9917. The Great Britain Pound slid against US dollar, as a robust US non-farm payroll report is likely to erode its last week’s exaggerated gain, while the Chinese export dependent Aussies as well as Kiwis faltered on distressful Chinese data.
The New Zealand Dollar appeared to be flatlined at $0.6838, after testing its initial resistance level at $0.6865, on a 30-day moving average, and the Australian dollar was slightly down by 0.19 percent to $0.7165, retreating 13 pips in the intra-day trade.
Addressing to a risk positive environment throughout the week, favoring emerging market currencies against the American dollar, head of foreign exchange strategy at ING in London, Chris Turner said, “Unless there is a breakdown in negotiations, we suspect the cautiously risk-positive environment can continue - which should favour higher-yielding, under-valued emerging-market currencies against the dollar.