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.
Evergreen buck becomes cheaper than common currency
On Monday, the evergreen buck dived versus the common currency after Friday’s rally on firm data on the American labor market.
On Friday, the greenback US currency rose by 0.3% against the common currency after the publication of statistics that drove hopes for further interest rate lifts by the Fed.
The data on the American labor market turned out to be firm. Apparently, it’s the best scenario for the key US bank because the report confirmed that the American economy is moving in the proper direction, as some market experts pointed out. The Fed is currently preparing the ground for another rate lift at its gathering that will be held in two weeks.
However, market experts stress that American trade disputes with other countries pressured the evergreen buck.
Last Saturday, the ministers of finance as well as the heads of the major financial institutions of the six G7 countries condemned the US actions to impose tariffs on aluminum and steel, pointing to their quite unilateral nature.
William Francis Morneau, Canadian Finance Minister, following a meeting in Canadian Whistler told that the US fresh actions threatened the values that united the both countries for a long time. He added that the American fees fail to correspond to the rules the rest of the world adheres to.
Market participants find it difficult to actively purchase US dollars before the G7 summit because of the position voiced by the chiefs of financial departments of these nations as for American protectionist policy.
The ICE index, gauging the dynamics of the American currency versus the six key rivals, headed south about 0.2%.
The common currency went up to $1,1684 in contrast with $1,1659 at the close of the previous trading session.
Against the Japanese yen the greenback dive to 109.66 versus Friday’s reading of 109.54.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!