Yen is strengthening against the dollar, depreciating against the euro
As of 13:10 UTC +9, the US currency rate against the yen dropped to 104.56 from 104.63 on Friday. The euro rose against the yen at the same time to 123.91 from 123.85.
Japan’s GDP in the third quarter soared by a record 21.4% in annual terms. Whereas in April-June we could observe its significant decline by 28.1%. On a quarterly basis, July-September growth was 5%, which is also a record, after falling 8.2% in the 2nd quarter. This is the first increase in the figure in the last four quarters amid the economic recovery from the shock caused by the COVID-19 pandemic.
The euro / dollar pair was trading at $ 1.1849 by 13:10 UTC +9, compared to $ 1.1834 at the close of the previous session.
The ICE Index, which tracks the dynamics of the US dollar against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona), lost 0.16% in trading on Tuesday. The broader WSJ Dollar Index fell 0.14%.
The pound sterling by 13:10 UTC +9 rose to $ 1.3224 from $ 1.3189 on Friday and to 1.11561 euros from 1.1153 euros.
It is also worth noting that this week investors are expected to summit the European Union, which may become the key to agreeing on a draft trade agreement with the UK. Meanwhile, British Prime Minister Boris Johnson was forced to self-isolate after contact with a coronavirus-infected member of the British Parliament.
The yuan exchange rate was 6.5777 / $ 1 compared to 6.6065 / $ 1 at the close of previous trading.
The People’s Bank of China (PBOC) has invested 800 billion yuan in the banking system through its Medium-Term Lending Facility (MLF). The rate on one-year loans was kept at the level of 2.95% per annum for the seventh month in a row.
The material has been provided by InstaForex Company – www.instaforex.com