• The Sterling is losing some of its gains and the euro is struggling towards the lowest level in 3 years


    ​The British pound yesterday gave up some of the gains it made last week, as investors took into account more favorable financial conditions under the leadership of the new British Finance Minister, but he remained above the $ 1.30 level, while speculators are still buying the British currency.​

    Last week, Sterling witnessed the best week in two months after Rishi Sonak was chosen as finance minister when his predecessor, Sajid Javed, abruptly stepped down, while Prime Minister Boris Johnson was amending his cabinet, according to Reuters.
    But the British Pound lost some of that strength yesterday, to be trading 0.27 percent lower at $ 1.3011 by 18:00 GMT, although it remains far from the low level, which is finally reached at $ 1.2873.
    In front of the European currency, sterling fell 0.3 percent to 83.24 pence per euro.
    The "Financial Times" newspaper reported last Friday that "Sonak" is preparing to facilitate the fiscal rules in Britain in its first budget, as it is under pressure from the Prime Minister to open the taps of spending.
    While the euro is struggling to its lowest level in three years yesterday, amid investor anxiety about weak growth in the region, while China's efforts to reduce the damage caused by the outbreak of the virus seem to spread calm in the markets for the yuan to reach the Australian dollar.
    The euro rose to $ 1.0845 in early trading but earlier touched $ 1.0817, the lowest level since mid-2017.
    The Yen was not affected by the weak economic growth data to be traded, down 0.1 percent to 109.84 Yen to the dollar.
    The dollar index reached 99.131, approaching the highest level in four and a half months, which hit Friday at 99.241.
    The Australian dollar rose 0.1 percent to $ 0.6724. The Chinese currency rose 0.1 percent in foreign transactions to 6.9835 yuan against the dollar, and there was no change in the sterling at 1.3046 dollars.
    Gold prices fell yesterday, from the highest level in two weeks, as a monetary policy intervention by the Chinese central bank to reduce the economic impact of the spread of the Coronavirus reassured investors and boosted the demand for high-risk assets. And gold fell in the spot transactions 0.3 percent to 1580.27 dollars an ounce (ounce) at 10:51 GMT. U.S. gold futures fell 0.2 percent to $ 1583.30​.
    Gold welding earlier in the session around the level of Friday near the peak of two weeks at 1584.65 dollars, but its gains diminished with the rise in global stocks after the Chinese central bank lowered the interest rate on its medium-term loans in an attempt to absorb the economic shock caused by the outbreak of the coronavirus. The dollar hovered near the four-month peak it reached in the previous session, making gold relatively expensive for holders of other currencies.​
    The transactions are expected to be weak, as the US financial markets were closed yesterday for a holiday. Copper prices jumped to their highest levels in three weeks yesterday, after China, the largest consumer of the metal, cut interest rates to compensate for the economic damage caused by the Coronavirus, although concern about the demand for industrial minerals is in the gains.
    Standard copper contracts ended the session on the London Metal Exchange, up 1 percent at $ 5,811 a ton. Earlier in the session, the red metal, which investors consider a measure of economic strength, jumped to $ 5828.50, its highest level since January 27.
    Among other industrial minerals, zinc contracts rose 1.1 percent to $ 2,172 a tonne while nickel contracts rose 0.7 percent to $ 13,110 a tonne. Aluminum contracts fell 0.1 percent to $ 1721 per ton, while in contracts rose 0.4 percent to $ 16,600 per ton.​

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