Yesterday (11/01), EUR/USD fell considerably amid global stock market shows no sign of recovery. The pair fluctuated within a range of $ 1.08465 to $ 1.09687 wide before closing at $ 1.08576, down from an opening price $ 1.09120.
Yesterday, the People’s Bank of China (PBOC) to keep the reference rate stable for the second consecutive day after the yuan devalued for 8 sessions. Even free competition yuan exchange Hong Kong rose on the floor, the stock market this country continues to sink into the red as investors doubt the Chinese government has intervened excessively in the market while no one specific instructions or a statement to clarify the purpose of the authorities.
The risk on the financial markets continue covering up the world’s stock markets, which lasted throughout the selling-off last week. US stocks had a volatile session. The S & P 500 index and the Dow Jones Industrial Average had time lows since early 10/2015 before recovering in late trading.
US stocks also uncertain oil prices to below $32/barrel, the bottom for over 12 years. Falling oil prices led shares of energy companies fell under. Besides, demand from the second largest economy stalled world also makes the shares of exporting companies, commodities (raw materials) declined. Before the unrest, from the stock market, cash flow had to pour into safer channels such as government bonds, gold or dollars.
But lower oil prices also mean that commodity prices decreases, meaning that the cost of consumables, production costs decline, the negative impact on inflation. Therefore, the gold-and-hold function of property value before the devaluation of the currency has proved unattractive and discounts in yesterday, the US dollar against most crowned currencies other strong in which EUR/USD also recorded a discount.
The US dollar index, a measure of the greenback’s strength versus the basket of six other major currencies has increased 0.25%, closing at 98.91 points.
Analysis of Group If24h