The dollar exchange rate shows a moderate decline in a pair with the euro and the pound, changing slightly against the yen.
The calculated ICE index, which shows the dynamics of the dollar relative to six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona), is declining by 0.29% during morning trading. The broader WSJ Dollar Index indicator is losing 0.06%.
The EUR/USD exchange rate at 8:55 am, increased by 0.06% and is $1.0517 compared to $1.0511 at the market close on Monday.
The Japanese yen paired with the US currency is stable and is trading at 135.04 yen per dollar against 135.07 yen the day before..
The value of the British pound against the dollar rose by 0.07% to $1.2261 from $1.2253. According to Rabobank analysts, the pound may fall below $1.20, as the dollar will support the demand for protective assets against the background of recession risks.
“If the market fears the risks of a recession in the US, then it should buy dollars, not sell them,” said Darag Maher, an analyst at HSBC, “This opinion is based on historical data on the dynamics of the dollar during the downward phase of economic cycles in the US.”
risk sentiment is returning to the markets, as evidenced by the growth of stock indices, including in Europe and the United States. Such sentiments generally negatively affect the traditionally more reliable dollar.
“As for the foreign exchange market, the dynamics are changing direction everywhere compared to last week, and the indicators are approaching key support levels after last week’s records”
The expert points out that the change in dynamics is supported by a number of factors, including the weakening of quarantine in China and data on GDP in Europe