Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Evergreen buck goes down
On Wednesday, the evergreen buck declined, while the UK pound rallied in Asia because British Prime Minister Theresa May told that she’d ask the European bloc for an extension of the Brexit deadline.
As a matter of fact, the currency pair GBP/USD jumped by 0.2% hitting 1.3136.
Fears over a no-deal Brexit receded after May proposed cross-party negotiations with Jeremy Corbyn, the leader of opposition in order to break the Brexit logjam.
May emphasized that the extension would be as short as possible, probably before May 22, in order to set Britain free from participating in EU elections.
Besides this, the USD index tracking the US currency versus a group of other peers went down by 0.2% ending up with 96.768 against the backdrop of a deceleration in durable goods spending.
Furthermore, durable goods orders went down for the first time for three months, as data on Tuesday revealed, contributing to signs that the deceleration in the American economy at the end of 2018 could extend.
The currency pair AUD/USD tacked on by 0.4% being worth 0.7097. Eventually, on Tuesday, the Reserve Bank of Australia left interest rates on hold at 1.5% exactly as anticipated. In a statement, Australia’s major financial institution kept describing the outlook for household spending as an area of uncertainty for the Australian economy.
Previously, the Australian Bureau of Statistics informed that Australia’s retail sales headed north by 0.8% in February month-on-month, which appears to be the fastest tempo since November 2017, confounding hopes for a smaller leap of 0.3%.
Furthermore, data also revealed that trade surplus tacked on to an all-time maximum.
The currency pair USD/CNY declined by 0.2%.
Besides this, the currency pair USD/JPY hit 111.48, rallied by 0.2%.
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 Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.