The EUR made a significant rise on the news of the stimulus expansion. Will it last long?
British pound declines in Asia as markets wait for Brexit details
On Wednesday, the British pound dropped in Asia, as markets looked ahead to Britain’s formal move to start a split from the EU later in the day, an historic moment, which will see British Prime Minister Theresa May outline the end game on areas from defense cooperation to trade.
The currency pair GBP/USD dived 0.39%, trading at 1.2399.
The US dollar index, assessing the greenback’s actual value against a trade-weighted basket of six crucial currencies, inched up 0.06%, trading at 99.59.
The currency pair USD/JPY hit 111.21, soaring 0.04% after retail sales data in Japan demonstrated a lower than expected ascend of 0.1% from a 0.5% surge expected.
The currency pair AUD/USD soared 0.16%, being worth 0.7645.
Overnight, the greenback grew against a basket of key currencies, as traders shifted focus from Trump’s healthcare bill setback to positive economic data as well as bullish comments from Federal Reserve officials.
April seasonal patterns weren’t supposed to work, but somehow they did. Even a strong fundamental issue such as the global recession amid the coronavirus couldn’t overwhelm it. That’s why May seasonal patterns may work as well.
The first days of May suggest the month will be risk-off for the GBP/USD. Here is why.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.