The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
Evergreen buck edges down on Trump’s disagreement with Fed’s decision
On Tuesday, the evergreen buck sank because Donald Trump expressed his strong disagreement with the Fed’s decision to have interest rates lifted.
Tracking the greenback’s purchasing potential versus its primary counterparts, the USD index headed south by 0.3% being worth 95.39.
The major US bank is expected to meet again for the purpose of considering interest rates. Financial markets generally expect the major bank to have rates lifted already in September and also later in 2018. By the way, since Donald Trump took office the key US financial institution has lifted rates up to five times.
Additionally, on Monday, US leader also accused China and the European Union of manipulating their currencies.
Some financial experts are assured that Fed officials are unlikely influenced by US leader’s remarks. As long as the American economy is in a good shape, there’s no reason to stop the rate lifts from the key US bank’s point of view.
Reports that America and China are going to hold negotiations this week were also cited as a headwind for the evergreen buck as market experts actually expect the gathering to provoke an easing in trade clashes.
Worsening trade tensions along with the recent Turkish lira downtime had pushed the USD index to 96.984 on August 15, which is its highest value since June last year.
At the same time, the currency pair USD/JPY stood still reaching 110.08. On Tuesday, the currency pair inched down below the psychologically-crucial 110 mark for the first time since June 28.
Besides this, the currency pair AUD/USD managed to ascend by 0.3%. NZD/USD rallied by 0.6%.
The currency pair CNY/USD went down by 0.3% reaching 6.8500 right after the People's Bank of China set the Yuan reference rate at about 6.8360 in contrast with Monday's rate of 6.8718.
The US CPI and core CPI are due at 15:30 MT time on May 12.
April seasonal patterns weren’t supposed to work, but somehow they did. Even a strong fundamental issue such as the global recession amid the coronavirus couldn’t overwhelm it. That’s why May seasonal patterns may work as well.
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