Here is what you need to know on Thursday 5 June:
The main currency pairs fluctuate within their weekly domains early Thursday. The European Central Bank (ECB) will announce monetary policy decisions and the American economic evaluation will submit job discount data in May, and read the weekly emotional claims, along with goods trade balance numbers for April. Christine Lagarde, President of the European Central Bank, will talk about the future outlook and answer questions at the post -investigation press conference. Finally, many Federal Reserve Policy makers (FED) is scheduled to make letters in the second half of the day.
US dollar price this week
The table below shows the percentage of change in the US dollar (USD) against the main currencies listed this week. The US dollar was the weakest against the New Zealand dollar.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | -0.54 % | -62 % | -0.43 % | -0.48 % | -0.91 % | -13 % | -0.46 % | |
| euro | 0.54 % | -08 % | 0.11 % | 0.05 % | -0.36 % | -63 % | 0.08 % | |
| GBP | 0.62 % | 0.08 % | 0.21 % | 0.13 % | -0.28 % | -0.54 % | 0.16 % | |
| JPY | 0.43 % | -11 % | -0.21 % | -05 % | -0.45 % | -0.71 % | -0.09 % | |
| CAD | 0.48 % | -05 % | -0.13 % | 0.05 % | -0.41 % | -68 % | 0.03 % | |
| Aud | 0.91 % | 0.36 % | 0.28 % | 0.45 % | 0.41 % | -0.20 % | 0.52 % | |
| Nzd | 1.13 % | 0.63 % | 0.54 % | 0.71 % | 0.68 % | 0.20 % | 0.71 % | |
| Chf | 0.46 % | -08 % | -16 % | 0.09 % | -0.03 % | -52 % | -0.71 % |
The heat map shows the percentage changes in the main currencies against each other. The basic currency is chosen from the left column, while the quotation currency is chosen from the top row. For example, if you choose the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage offered in the box will represent the USD (base)/JPY (quote).
The US dollar (USD) was put pressure after issues of the total disappointing economy on Wednesday. The automatic data processing (ADP) stated that employment in the private sector increased by 37,000 in May, and lost the 115,000 market expectations by a wide difference. In addition, the Institute’s ISM Services Index (ISM) decreased to 49.9 in May from 51.6 in April. The dollar index fell more than 0.4 % on Wednesday before entering a standardization stage in about 99.00 early on Thursday. Meanwhile, the US futures stock index traded is trading less marginalized after the main indexes of Wall Street were closed.
Germany’s data on Thursday showed that the factory orders grew 0.6 % on a monthly basis in April. This publication followed the increase of 3.4 % in March and came better than the market expected a 1 % decrease. The European Central Bank is widely expected to reduce the main prices by 25 basis points (BPS) after the June meeting. In addition to the policy statement, the European Central Bank will also issue updated employees’ expectations. Euro/dollars It holds a steady above 1.1400 in the European morning on Thursday.
GBP/USD It took advantage of the pressure of the surrounding sale of the US dollar and closed in a positive area on Wednesday. The husband fluctuates in a narrow channel in about 1.3550 early Thursday.
USD/JPY He decreased sharply and lost approximately 0.9 % on Wednesday. The husband corrects higher and trades above 143.00 to start the European session.
Aud/USD It holds a steady at about 0.6500 after almost 0.5 % on Wednesday. Data from China showed earlier today that PMI Caixin Services improved 51.1 in May from 50.7 in April.
gold Trading in a narrow range over $ 3,350 continues to publish small gains on Wednesday.
Common questions about the European Central Bank
The European Central Bank (ECB) in Frankfurt, Germany, is the backup bank. The European Central Bank places interest rates and runs the region’s monetary policy. The state of the European Central Bank is to maintain price stability, which means maintaining inflation by approximately 2 %. Its primary performance is by raising or lowering interest rates. Relatively high interest rates usually lead to the most powerful euro and vice versa. The Board of Directors of the European Central Bank is making monetary policy decisions at eight times a year. Decisions are made by the heads of national banks in the eurozone and six permanent members, including the President of the European Central Bank, Christine Lagarde.
In maximum situations, the European Central Bank can enact a policy tool called quantitative mitigation. QE is the process that the European Central Bank prints and uses to buy assets – usually government or companies – from banks and other financial institutions. QE usually leads to the weakest euro. Ken is the last resort when it is unlikely to achieve interest rates simply the goal of stabilizing prices. The European Central Bank used it during the great financial crisis in 2009-11, in 2015 when inflation remained stubborn, as well as during the roaming epidemic.
The quantitative tightening (QT) is the opposite of QE. It is implemented after QE when the economic recovery is ongoing and inflation begins to rise. While in QE, the European Central Bank (ECB) purchases government bonds and companies from financial institutions to provide them with liquidity, in QT, the European Central Bank stops buying more bonds, and stops investing the manager on the bonds that he already holds. It is usually positive (or bullish) for the euro.
