The head of the Federal Reserve Jerome Powell will testify on the Semiannual Monetary Policy Report on Tuesday and Wednesday
Common currency jumps on Italy budget reports
On Wednesday, the common currency rebounded, offsetting up to five losing days because reports that Italy is on the verge of cutting its budget deficit after 2019 soothed worries over the prospect of a wider deficit, which had impacted financial markets.
The currency pair EUR/USD rallied by 0.23% being worth 1.1573, drifting away from Tuesday’s one-and-a-half month minimum of 1.1504.
Italian newspapers informed that the country’s populist authorities are going to diminish its budget deficit objectives for 2020 and also 2021 to respectively 2.2% and 2% and also stick with their initiative for 2.4% for next year.
The country’s authorities had initially told that they would intend to run a deficit of about 2.4% over the next three years that would have broken EU fiscal regulations, frightening financial markets and backing criticism from the European Commission.
Giuseppe Conte, Italian Prime Minister was expected to hold a cabinet gathering later in the day to talk about the situation. Moreover, Italy requires sending its draft budget plan to the European Commision by the middle of October.
The common currency leapt versus Japan’s currency. The currency pair EUR/JPY added 0.46% trading at 131.87 having slumped to a two-week minimum of 131.18 on Tuesday.
The evergreen buck tumbled versus a currency basket. Estimating the evergreen buck’s purchasing power versus a number of its main counterparts the USD index slipped by 0.16% trading at 94.99.
The evergreen buck jumped versus Japan’s currency because risk appetite revived. The currency pair USD/JPY added 0.19% coming up with a reading of 113.87.
As for the UK currency, it managed to ascend. The currency pair GBP/USD hit 1.2997 having dived to 1.2940 on Tuesday, which appears to be the weakest value since September 10 because market participants were still gloomy as for prospects for Brexit talks.
The United States will publish the non-farm employment change, also known as non-farm payrolls (NFP) at 15:30 MT time on February 7.
The level of non-manufacturing PMI for the United States by the Institute of Supply Management will be published at 17:00 MT time on February 5.
The Federal Open Market Committee will publish its meeting minutes on February 19, at 21:00 MT time.
Will coronavirus continue keeping the markets in fear? What releases should we wait for? Find out in the news!
Tesla stock drops in premarket trades on Thursday. Why? See the article (it's short) and use it to your advantage.