The US dollar index declined dollar decreased by 0.2%, reaching the level of 104.18 points, compared to the index that opens today’s trading at 104.37 points. The index indicated its highest level at 104.37 points. Friday’s performance was affected by Friday’s trading by 0.2%, and it achieved the second daily gain in a row, as part of compressed operations from its lowest level in four months at 103.65 points.
The exchange rate of the Chinese yuan today. The rise of the US dollar against the yuan: The US dollar rose against the Chinese yuan by 0.15%, reaching 7.2924, compared to today’s joint opening price of 7.2829, and its lowest level at 7.2773. Friday’s performance: The Chinese yuan ended Friday’s trading down by 0.05% against US dollar, recording a second daily loss in a row, amid a recovery in US revenues.
US Dollar Index: US Dollar Index saw a decline after two consecutive rises. This reflects the likely meaning of the majority of politicians in the United States.
Chinese Yuan: The rise in US interest rates against the yuan reflects the influence of the People’s Bank of China on lowering interest rates, which leads to a weakening of the yuan against the US dollar. These currency movements reflect the volatility of global financial markets in light of current political and economic events,
When US President Joe Biden announced his withdrawal from the US presidential elections, paving the way for another Democratic candidate to confront Republican candidate Donald Trump in the upcoming November elections. This announcement came as a surprise to the American political scene, which led to a decline in the US dollar in the Asian market on Monday at the beginning of the week’s trading, as it witnessed a decline against a basket of major and minor currencies.
People’s Bank of China rates fall
The People’s Bank of China reduces interest rates for the first time in a year: In a related context, the Chinese yuan declined for the third day in a row after a surprising decision by the People’s Bank of China to reduce interest rates for the first time in nearly a year. This move comes as part of the latest monetary stimulus measures to support the growth of the world’s second-largest economy. This decision reflects the efforts of the Central Bank to provide additional economic support in the face of current economic challenges.
Impacts on the markets: The decline of the US dollar and the Chinese yuan reflects the fluctuations in global financial markets in light of the current political and economic events. Biden’s decision to withdraw from the election and the People’s Bank of China’s decision to cut interest rates are expected to significantly impact market movements over the coming days, requiring investors to closely monitor developments. Accordingly, the exchange rate of the Chinese yuan today: The US dollar rose against the Chinese yuan by about 0.15% to (7.2924), from the opening price of today’s trading at (7.2829), and recorded the lowest level at (7.2773).
USD/CAD rises to 1.3750 as markets focus on Bank of Canada policy: USD/CAD rose to nearly 1.3750 in European trading on Monday, after recovering from its daily losses. . This rise reinforces the relative weakness of the Canadian dollar, which is exposed to multiple headwinds.
The Canadian dollar is weakening due to the sharp correction in oil prices, a major factor affecting the Canadian economy significantly. In addition, uncertainty prevails in the markets ahead of the Bank of Canada’s upcoming meeting on Wednesday to review interest rate policy, adding selling pressure on the Canadian dollar.
The US Dollar (USD) is witnessing a gradual correction following US President Joe Biden’s withdrawal
The US Dollar (USD) is witnessing a gradual correction after US President Joe Biden withdrew from his re-election bid, leading to political uncertainty. The US Dollar Index (DXY), which tracks the value of the US currency against six major currencies, fell to approximately 104.20. Attention is now turning to the decisions of the Bank of Canada and the effects they will have on the course of the USD/CAD pair, with expectations of possible movements based on these decisions.
After US President Joe Biden announced the withdrawal of his candidacy for re-election, it was expected that there would be a significant impact on the currency market. The market is often affected by political changes, especially as speculative market participants adjust to new expectations. With Biden’s withdrawal, every other Democratic candidate’s chances were supposed to increase over Biden, which could lead to a partial reversal of the “Trump trade”, which are strategies that anticipate certain effects if Donald Trump returns to the presidency of the United States. But what is strange is that the market has not witnessed major changes at this stage.
US dollar does not react much to Biden stepping down:dollar index (DXY) opened Monday morning in Asian markets with only minor changes, trading essentially at the same levels as it was on Friday. Yields on US government bonds also changed only marginally. Even the Mexican peso — considered an indicator of “all of Trump’s trades” — is trading at roughly the same levels it ended last week.
Why didn’t the market react as expected? There are several possible reasons for the lack of significant market reaction to Biden stepping down:
Analysis of economic data: The market may be more focused on current economic data and future expectations, such as Federal Reserve decisions and interest rates, rather than political changes.
