The OPEC meeting and the US Nonfarm Payrolls rocked the market last week. The market is torn between optimism about the global economic recovery and concerns about the new coronavirus strains.
Common currency dives on Italy woes
On Tuesday, the common currency went down in the face of new worries over Italy's fiscal issues. Meanwhile, the safe haven Japanese yen managed to rally because the boost to risk appetite from the re-negotiated NAFTA deal receded.
The currency pair EUR/USD slipped by 0.41% being worth 1.1530, which is the lowest value since September 10.
The slip in the common currency showed up after head of the lower house's budget committee, Claudio Borghi told that Italy would have tackled its fiscal issues with its own currency.
The comments contributed to a clash with the European bloc over the populist government’s budget proposal seeking to ramp up spending and reduce taxes, although would increase Italy's debt and also have EU budget rules breached.
The common currency slumped versus the Japanese yen. The currency pair EUR/JPY lost 0.58% trading at 131.14.
The evergreen buck slumped from 10-month maximums versus the Japanese currency. The currency pair USD/JPY lost 0.15% trading at 113.75.
The Japanese yen was backed because market sentiment from a fresh update of the North American Free Trade Agreement actually faded. Experts are afraid that the current US presidential administration is going to take a harder line in its trade stance against China, utilizing trade deals with Mexico, South Korea, and Canada as leverage.
Tracking the evergreen buck’s purchasing potential versus a number of its key rivals the USD index surged by up to 0.28% trading at 95.19, which is the highest result since September 12.
The UK currency slipped. The currency pair GBP/USD slid by 0.43% trading at 1.2985 due to the fact that market participants were still pessimistic about prospects for Brexit talks between the European Union and the United Kingdom.
The Australian dollar declined. The currency pair AUD/USD declined 0.54% being worth 0.7186 after Australia’s major financial institution left interest rates intact at record minimums overnight, in what was a widely anticipated move.
Commodities (iron ore, oil) and commodity-linked currencies (AUD, CAD) surged. West Texas Intermediate has reached $75 a barrel, while Brent rose to the highest mark since October 2018.
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