The single European currency rose against the US dollar after the European Central Bank launched a new stimulus, but could not justify the more dovish market expectations imposed on it.
The ECB has lowered its deposit rate to a record low of -0.5% from -0.4% and said it will resume bond purchases of 20 billion euros per month from November.
The European regulator also announced that bond purchases will last as long as needed and will be completed shortly before the ECB begins to raise key interest rates. Investors expected more drastic measures by the regulator to soften financial and credit policy.
The euro rose by 0.55% to $ 1.1069, after an initial decline to $ 1.0925 - the lowest since September 3, when the single currency fell to $ 1.0924, which was the weakest indicator in the last two of the year.
The appreciation of the single currency was also triggered by a statement by the ECB that eurozone banks would be exempted from paying penalties for available cash, which is six times more than their required reserves.
The dollar rose against the Japanese yen amid news that the Trump administration was discussing the postponement or cancellation of some tariffs on Chinese goods.
The British pound fell by a quarter percent against the euro, but strengthened against the dollar, amid recovery in the growth of the single European currency.
In relation to the dollar, the pound strengthened by 0.2% to $ 1.2351, close to the level of $ 1.2385, which was the highest increase since Monday, when concern about the unsuccessful Brexit decreased, and some economic data turned out to be better than it was expected.
The Japanese yen consolidated near a six-week low against the dollar on Friday, amid all the same news about the improvement of US-Chinese relations. This pushed the yuan to an almost four-week high against the US currency.
On Friday, China's financial markets are closed due to public holidays. In offshore trading, the yuan rose by 0.3% against the dollar to 7.0459, the strongest data since August 19.
In the short term, cautious optimism about resolving a trade war between the US and China should continue to increase US Treasury bond yields and put pressure on safe-haven currencies.
GBPUSD: Sell. Entry point – 1, 2354. Take profit – 1, 2316. Stop Loss – 1, 2419.
USDCAD: Buy. Entry point – 1, 3218. Take profit – 1, 3232. Stop Loss – 1, 3193.
AUDUSD: Sell. Entry point – 0, 6877. Take Profit – 0, 6862. Stop Loss – 0, 6903.