The price of the US dollar rose slightly against the Japanese yen on Thursday, while there were no clear changes in the prices of risk-sensitive currencies pending the easing of trade tensions between the United States and China in the hope of returning some balance to global economic growth.
The dollar rose against the Japanese yen by 0.2 per cent to reach the of 109.53 yen per one dollar, after rising to its highest price in 6 months at 109.73 yen per dollar earlier this month. Whereas, the existing currency moved very slightly against the US dollar, with the EUR / USD pair trading at $1.10905. The Australian dollar remained steady against the US dollar, as the price of the pair reached $ 0.6927, which remains lower than the 4-month high of $ 0.6939 earlier this month. Whereas, the kiwi was trading at 0.6648 dollars, near the pair’s highest level in 5 months.
Global currency markets remained in the mood for holidays after Christmas yesterday, Wednesday, and there are still many closed positions on Thursday. However, traders took positive action after Washington and Beijing reached a tentative agreement on trade earlier this month, which is expected to continue to support risky assets.
In the currency markets, the strong risk appetite usually translates into more safe-haven selling, such as the yen versus the currencies that increase due to growth, especially in China, such as the Australian dollar.
Experts believe that the stock markets have witnessed major movements against the currency markets, which have had a limited reaction so far, but they believe that currencies will soon witness similar movements.
China has said that it is now in close contact with the United States regarding the signing ceremony of the trade agreement, after US President Donald Trump said on Tuesday that he and Chinese President Xi Jinping will organize the signing ceremony of the recently agreed trade deal.
Finally, the Chinese yuan appreciated slightly to 6.9895 yuan per dollar, an increase of 0.09%. Elsewhere, the pound traded at $1.2996 per pound, a slight increase from the levels that the pair reached before the Christmas holidays, although it is still less than the peak reached by the husband on December 13 at $1.3516 per pound.