China stabilizes forex market, Germany sets it on fire
China’s central bank decided to facilitate a compromise with the US by keeping RMB in the sable mild position, thus easing the tension on the heated exchange rates. Nevertheless, markets were still galvanized by the developments in the EU.
The German high court requested that European Central Bank has three months to present justification for acquisitions under the joint bond-buying project. Otherwise Bundesbank will leave the scheme aimed at softening the pandemic’s impact.The news frightened the traders, who are already on edge because of the US-China tensions and upsetting macroeconomic reports.Euro dropped to US$1.0826 overnight and the three-year low of 115.09 yen.The yen, meanwhile, jumped up in trading against the US dollar, reaching the highest position in seven weeks - 106.22.The usually vulnerable to any risks kiwi and Aussie also saw gains against the greenback. The British pound remained flat at US$1.2431. The US dollar index also remained stable at 99.818.