Value of Dollar has gone down in the National Stock Exchange. Due to this, the riskier currencies have gained. Earlier assumptions about extreme performances have all proved wrong. Meanwhile, US-China relations still remain sour. Investors thought there will be recovery from COVID 19 pandemic soon.
Overnight trade saw a bullish market. The Australian dollar observed a change after 10 weeks. It saw a ten week high on Thursday. The highly sensitive Australian dollar recorded $0.6616. On the other hand, New Zealand saw a ten day high of $0.6157. Both Australia and New Zealand seem to be on an upward trend.
According to Imre Speizer, an analyst of Westpac FX this seems like it will continue for a while. He believes that this is a part of a big rally that has not finished yet. This trend is going to go up for equities and it is most likely that the currencies would follow suit. During the month of March, S&P was recorded low. Now it is also up by 35 percent. You can learn more about this stock market and how it is affecting the currencies.
British pound somehow remained an exception in all this. It is under pressure because of the inflation data. This has brought back speculations around the Bank of England. There are speculations that it’ll cut interest rates.
US- China tensions still remain as it is. As a matter of fact the whole world is witnessing a sort of anti-China sentiment. Beijing has pledged $2 billion to fight Coronavirus. Mike Pompeo, The U.S Secretary of State called this $2 Billion meagre in comparison with the amount of damages that the virus has caused to the world.
