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 is intact
On Monday, key currencies were nearly intact in Europe. However, a positive tone in stock markets in the wake of Friday’s American GDP report assisted the Australian and New Zealand dollars to rally a bit versus the evergreen buck.
Experts haven’t noticed an evident impact on the common currency from the general election in Spain, with the center-left PSOE party as a winner. Pedro Sanchez, PSOE leader can’t form a majority cabinet with Podemos, the more radical of the country’s two left-wing parties that makes it less probable that Spain is going to have budgets with excessive deficits drafted and further destabilize the fiscal consensus in the EU.
The common currency was worth $1.1161, a bit above the two-year minimum that it sank to the previous week. In fact, it was backed by profit-taking in oil against the backdrop of Twitter remarks from Donald Trump at the weekend. American leader told that talked to Saudi Arabia as well as others about soaring crude flow. Apparently, lower crude prices normally benefit the European economy, as an oil importer. On the other hand, such petrocurrencies as the Russian ruble face an adverse effect. From the previous week’s maximum, it has slumped by nearly 1.5%.
Estimating the evergreen buck’s purchasing power against its main counterparts the USD index hit 97.708, nearly 0.3% below the fresh maximum for this year recorded on Tuesday.
The common currency might react later to EU monetary data. Additionally, private-sector credit surge is anticipated to have stuck with 3.3% in March, intact from February.
The UK pound has started the trading week in wait-and-see mode in anticipation of a speech by BoE chief Mark Carney.
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.
Although Jerome Powell’s speech sounded hawkish on Wednesday, September 22, markets did not get scared and the main stock indices got bought back…
Turkey’s central bank governor was at a crossroads: to hold interest rates and take a risk to be fired like it was for three governors before him, or to comply with the president, to cut rates, and to risk the market. Let’s find out, how to react to the rate cut.