09.09.202014:51 Forex Analysis & Reviews: Greenback retains previous position, no grand movements yet

The US dollar remains stable on Wednesday morning. It stayed in its previous position against the euro, while it slightly plummetted against the Japanese yen.

The euro has settled at the price level of $1.1776 per euro on Wednesday, while the previous trading day ended at $1.1775 per euro. The position of the EUR/USD pair remained unchanged. Meanwhile, the dollar in relation to the Japanese yen has reduced its value to £105.91 per dollar. Tuesday's trading ended at around £106.04 per dollar.

Aside from the dollar, the euro is also losing ground in relation to the yen. On Wednesday, its price slightly dropped to £124.68 per euro from Tuesday's price level of £124.85 per euro.

The dollar index against a basket of six major world currencies, which include the yen, Canadian dollar, Swiss franc, Swedish krona, pound sterling, euro, went up by 0.06%.

So far, all the attention of participants in the foreign exchange market is focused on the next meeting of the main regulator of Europe - the ECB, which should take place tomorrow. The results of this meeting can radically affect the balance of power in the foreign exchange market. The dynamics of the euro may particularly change. Recall that last week the euro was seriously affected after the chief economist of the ECB made his statements. That is why the new decisions of the Central Bank are so exciting for investors.

The Japanese yen, on the other hand, is showing a positive attitude, which is playing out the situation with the escalation of the conflict between the US and China. The resulting tension is only in favor of the Japanese yen. Given the fact that the US authorities do not intend to stop their pressure on China and are preparing to introduce new sanctions that will affect the import of goods from Chinese territory, the tension will increase even more, and the yen will appreciably strengthen.

Earlier, US President Donal Trump made a statement about his intentions to terminate all trade and economic relations with China. This quite seriously frightened the market participants, nevertheless, the US dollar itself was hardly affected.

Meanwhile, the GBP/USD pair traded in a negative zone on Wednesday morning. Its rate stood at $1.2957 per pound sterling, while the day before it was at $ 1.2982 per pound sterling. The pound also sank in relation to the euro from its previous price level of €1.1025 to €1.1006 per pound.

From the looks of it, the pound has finally begun to realize the risks associated with Brexit without signing a trade agreement with the EU. At least, Boris Johnson's statements about the possible rejection of the deal now look not as rosy as they did at the beginning.

The Chinese yuan also dipped 0.06% against the dollar which shifted it to the price level of £6.851 per dollar. This may be due to the ambiguous statistics on the growth of the Chinese economy. The inflation rate in the country over the last month of summer fell to the minimum in May, while consumer prices, on the contrary, increased by 2.4%, which was rather slightly lower than the previous growth of 2.7%.