The foreign exchange market was mixed on the last trading day. The U.S. dollar (USD) was mixed against a majority of the other four most traded currencies. The USD had a minor move of 0.08% vs the EUR and 0.25% vs the GBP. It was down by 0.14% against the Japanese Yen (JPY). In contrast, it actually gained ground against the Canadian dollar (CAD) with a 0.0% increase.
The euro struggled with its own turbulence, dropping 0.08% against the dollar. Nonetheless, the EUR strengthened as much as 0.17% against the GBP. The common currency, one of the world’s major currencies, dropped 0.22% versus the Japanese yen (JPY=) so far today. It fell 0.07% vs the CAD and 0.11% vs the AUD. Besides, it dropped sharply by 0.60% vs the New Zealand dollar (NZD) and by 0.22% vs the Swiss franc (CHF).
Those comments added to the pressure in the market as the British pound faced downward force, falling by 0.25% against the USD. The downturn was evident in all major currency pairs. Overall, investors’ propensity to respond aggressively to any economic indicator and/or geopolitical development that continued to mold into the respective market sentiments.
The Australian dollar dipped by 0.03% against the USD. At the same time, the New Zealand dollar fell even sharper, down by 0.50% against the USD. The Swiss franc, meanwhile, was down 0.14% against the dollar as well, in line with wider risk aversion seen in currency markets.
General market sentiment continues to be risk-averse as investors, including traders and speculators, evaluate the effects of newly released economic data and global central bank policy. Market participants continue to fret over persistent inflationary pressures. They’re examining what interest rate expectations might mean for currency performance in the short term, too.