The appetite for risk has increased since the publication of the minutes of the Federal Reserve meeting in June, notes Trading Economics. The document emphasizes the need to maintain a “stimulating monetary policy for some time”.
Many members of the Federal Open Market Operations Committee (FOMC) said the Federal Reserve could better describe its plans for future monetary policy decisions at future meetings.
In addition, Federal Reserve leaders discussed in detail the possibility of using a monetary policy instrument, the last time used during World War II – to control the yield curve. The mechanism used, in particular in Japan and Australia, involves the Central Bank maintaining the yield on US Treasuries at target levels by buying and selling them on the market. Nevertheless, almost all participants in the FOMC meeting in June said that many questions remained about the costs and benefits of using this approach.
On Thursday, foreign exchange markets expect the release of data from the US Department of Labor on the country’s unemployment rate in June and the number of Americans applying for unemployment benefits for the first time.
The British pound is becoming more expensive. The combined UK Purchasing Managers’ Index (PMI) rose to 50.1 points in June from 40.7 points a month earlier, IHS Maria / CIPS final data showed on Wednesday. For the first time in four months, the indicator exceeded 50 points, which shows an increase in business activity in the country’s industrial sector.
In addition, investors continue to watch the next round of negotiations between London and Brussels on a trade agreement after Britain leaves the EU.
Today, the pound sterling rose against the dollar by 0.19%, to $ 1.2499 per pound against $ 1.2475 per pound on Wednesday and against the euro by 0.06%, to 1.1094 euros against 1.1087 euros per pound at the close of trade yesterday.
On Thursday morning, the common currency appreciated against the dollar by 0.14% to $ 1.1267 per euro against $ 1.1251 per euro at the end of the previous trading session. Against the yen, US money is stable
and traded at 107.47 yen per dollar. The value of the single European currency rose 0.15% against the Japanese – to 121.1 yen per euro from 120.92 yen on Wednesday.
The New Zealand dollar rose 0.43% against the US dollar and traded at $ 0.6505.
The ICE Dollar Index, which shows the value of the US dollar against six major world currencies, is 0.11% lower than the previous day. The WSJ Dollar indicator, which tracks the dynamics of the dollar against 16 major world currencies, also lost 0.11%.
This morning, the price of futures for gold in August on the New York Stock Exchange Comex fell 0.31%, or 5.45 dollars, to $ 1,774.45 per troy ounce. July silver futures fell 0.36% to $ 18,148 an ounce.
Gold, traditionally considered a safer asset in times of economic uncertainty, lost its investor appeal on Thursday as news of successful coronavirus vaccine trials returned market sentiment.
Pfizer, an American pharmaceutical company, and BioNTech, a German biotechnology company, report that their coronavirus vaccine has shown positive results in the early stages of clinical trials. According to CNBC, the vaccine provokes immune reactions in healthy patients and affects the appearance of fever and other side effects.