The dollar gained value as worries about the US response to China’s proposed security law and renewed protests in Hong Kong supported safe-haven demand for the greenback
GBP/JPY trading strategy involves capitalising on volatility. In the current climate any news which provides more information on the economic recovery outlook of the UK will have quick and sharp implications on the currency pair.
Once a currency-market flashpoint, the yen/dollar relationship has been calmer in recent years. But with both countries feeling the effects of the Covid-19 crisis, stability between these two huge monetary units cannot be guaranteed.
The lira slipped to a low of 7.2598 per US dollar in morning trading
One may expect the currencies of two countries as closely linked as the US and UK to enjoy a reasonably harmonious relationship. But the rollercoaster ride of the last 40 years shows that it is often anything but.
In unprecedented times of market volatility, analysing the Pound to Rand history provides an insight into the pair’s future price movement. Let’s take a closer look at the GBP to ZAR history at Capital.com and spot the best trading opportunities.
UK markets made a brisk start to the week, with across the board increases. But the effects of the coronavirus epidemic continue to hobble talks on the future relationship between Britain and the European Union.
Norway, one of the richest countries per head in the world, is suffering a double hit from the coronavirus and the fall in oil prices. Economic activity looks likely to slow after the imposition of emergency measures to combat the virus.
Fears of a global slowdown and the economic threat posed by the coronavirus have bolstered demand for bullion. But some see the fact that gold’s traditional rival, the dollar, is also strong as indicating a serious crisis ahead.
Mexico’s currency the peso is at 12-monthly highs, supported by returning economic growth and a new North America trade deal. The exchange rate has helped the country respond to economic shocks, according to experts.
A few years ago, China’s renminbi, also known as the yuan, was carrying all before it, joining the elite basket of reserve currencies and possibly challenging the US dollar’s role as lynchpin of global finance. But while it remains remarkably steady on foreign exchanges, much of the euphoria seems to have died down.
The Swiss franc is the ultimate safe-haven currency, and has been buoyed by a good economic performance by a country genuinely at the heart of Europe. But the Swiss remain dependent on the health of the euro-zone, making it vulnerable to any downturn.
GBP/CAD technical analysis points to a possible drop back towards the pair’s 200-day moving average. The medium-term outlook for the pair is still bullish.
USD/JPY technical analysis shows that bulls could rally the pair towards the 111.00 level before a correction occurs. Bearish MACD price divergence on the one-hour time frame is warning of a pullback towards the 109.00 level.
The euro has lost ground in the last 12 months against dollar, yen and pound. The International Monetary Fund is urging the euro-zone to accelerate reforms to improve competitiveness.