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Evergreen buck dives, as US-China trade negotiations end
On Friday, the evergreen buck slumped versus other rivals because trade negotiations between China and the United States ended.
Estimating the purchasing power of the US currency against its main rivals, the USD index went down by approximately 0.12% hitting 95.44.
China and the United States moved ahead with 25% duties on $16 billion worth of products, as trade negotiations between the two sides brought no agreement. The two leading economies of the world have been in a fierce trade conflict for months.
Meanwhile, Fed Chair Jerome Powell is anticipated to deliver a speech on Friday at the annual gathering of key bankers. Market participants are going to closely watching the event for probable prompts on future monetary policy. The Federal Reserve kept rates on hold at its last gathering in August, although it’s anticipated to have rates lifted at least two times before the end of 2018.
The evergreen buck managed to ascend versus the safe-haven Japanese yen. The currency pair USD/JPY tacked on by 0.13% hitting 111.44. As a rule, in times of uncertainty, traders are prone to investing in Japan’s currency, traditionally considered to be a reliable safe asset during hard times.
The common currency managed to rally. The currency pair EUR/USD added 0.22% showing 1.1564. The UK currency gained ground too. The currency pair GBP/USD soared by 0.04% trading at 1.2820.
Meanwhile, Turkey’s currency went down a bit versus the evergreen buck. The currency pair USD/TRY inched up by 0.12% reaching 6.0800 due to the fact that Turkish financial markets are unavailable due to holidays. The Turkish lira has been suppressed for the last few weeks because Turkey and America disagree over a detained US pastor.
Additionally, the Australian dollar ascended. The currency pair AUD/USD gained by 0.39% demonstrating 0.7275. The currency pair NZD/USD surged by 0.02% showing 0.6641. As for the Canadian dollar, it dived a bit versus the US dollar. The currency pair USD/CAD gained 0.01% closing with 1.3082.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.