Investors are currently awaiting the decision of the US Federal Reserve System (Fed), whose key Federal Open Market Committee (FOMC) is due to issue its decisions and recommendations today, June 10, 2020, after a traditional two-day meeting. According to economic correspondents, the Fed’s FOMC is not expected to make any major changes to the current monetary policy, with rates remaining close to zero while maintaining asset purchasing programs. However, almost every meeting of central banks with a global reach and especially the Fed increases the nervousness of financial market investors.
On 10 June, this investor sentiment was also reflected in the international foreign exchange – Forex market, when at 7:48 am CET the global currency pair EUR/USD traded at a mutual exchange rate of US$ 1.137 per EUR with the current daily strengthening of the EUR by +0.22% of the exchange rate against the USD. This EUR/USD exchange rate was achieved in a situation where the value of the USD declined against other major world currencies and according to the US Dollar Currency Index (DXY) it was at 96.13 price level with the current daily decrease of -0.2%.
According to economic correspondents, some investors’ concerns are currently increasing the exchange value of the EUR against the USD. The Fed’s FOMC could, according to some speculation, take steps to curb the recent increase in bond yields, which, according to investment bank financial strategists, would lead to a further dollar exchange rate depreciation against most world currencies. Some analysts are lowering the chances that the FOMC will adopt a so-called yield curve control that will lead to lower ten-year US bond yields, but uncertainty about the outcome of the Fed’s meeting could keep the US dollar under pressure, experts say.
This investor sentiment was reflected not only against the single European currency, the EUR, but also other European currencies, especially the British pound (GBP). The GBP strengthened during European Wednesday morning of 10 June by +0.29% of the exchange rate and at 8:11 am CET, this GBP/USD currency pair traded at a mutual exchange rate of US$ 1.277 per GBP. The GBP strengthened against the USD and but also strengthened against the EUR and the exchange rate of the EUR/GBP currency pair fluctuated at GBP 0.89 per EUR, with a daily depreciation of the EUR by -0.112% of the exchange rate against the GBP.