New York Exchange Market: Natural Disasters, Tense Politics and
Yield Rate Fell, USD keeps Falling
The exchange rate of USD to other main currencies fell last Friday. Hurricane scourge, tense international politics, and bonds yield rate keeps falling makes pressures on USD.
USDX to six currencies fell 0.3% to 91.354. The government approved the aid program of the hurricane increase the debt ceiling. Therefore, USDX trimmed losses. This week, USDX fell1.6%. The US 10 years bond yield fell to 2.038% last Thursday. It made pressure on USD as well. Friday, USD fell out of 108 JPY to 107.83 ended at 108.45 on Thursday. It is the lowest point since November 2016. Furthermore, USD to JPY fell 2.2% this week.
Analysts said the rate of USD to JPY fell is because of USD become weaker instead of JPY acted strong. Investors tried to avoid the risks last Friday. They were worried about the relationship between the US and North Korea. North Korea might launch another missile on Saturday to celebrate the National Day. Moreover, Hurricane Emma might hit Florida on Saturday night or Sunday morning. Both factors harm the rate of USD. The US is still dealing with the damage caused by Hurricane Harvy two weeks ago.
Euro and GBP
Analysts also said the decreasing of US yield rate make the decreasing of USD exchange to JPY. USD fell over 108 JPY. It might end at 106.50 JPY especially if US 10 years bonds yield rate fell over 2.0%.
The rate of USD to Euro keeps dropping. Euro increased to 1.2093 USD highpoint and back to 1.2029 USD. It ended at 1.2024 USD on Thursday New York Market. Euro increased 1.4% this week.
CEO of ECB Draghi said on Thursday that the officers will evaluate the Quantitative Easing Plan on the meeting 26th October. The market expects ECB will reduce the bonds purchasing plan which caused 60 billion euros every month in 2018.
Analysts said the speech of Draghi belongs to doves. It couldn’t stop the increasing of Euro to USD. It makes USD got more pressures.
GBP was at 1.3196 USD. The high point was at 1.3224 which is the highest one since August. In this week, GBP to USD increased 1.9%. It is the hugest increasing in a week since June.