As per the observation, the greenback currency “USD” is falling from past few days as it has growing concern over China & Japan growth factor. Along with that it has added geo political tensions between UAE & Iran over oil crisis, while this boosted a demand for ‘CHF’ (Swiss Franc) & ‘JPY’ (Japanese Yen).
The Data shows a falling trend backed by Caixin manufacturing PMI which shows the Chinese economy has contracted to 48.2. In a current scenario, the currency pair “UDS/JPY” has been plunge to 118.73 with a change of more than 1.07%
The lowest reading that separates the expansion with the contraction of the economy. The markets feel jittery over the turmoil & diplomatic fights between UAE & Iran. As in this case it has seen an unexpected start from the currency industry
While all the global index has dipped more than 8.12% that has affected the divergence in monetary policy between he several central banks like Federal Reserve (Fed), European Central Banks (ECB), Bank of Japan (BoJ), etc.
Dhruv Williams – Analyst