During the conference in Hague, German Chancellor Angela Merkel said that the EU would find a backstop solution by October 31 (Brexit deadline).
Evergreen buck goes down for the third day
On Tuesday, the evergreen buck went down versus key counterparts, slumping for a third day in a row because signs of decelerating inflation cemented market hopes that the Fed will have its rates cut in 2019.
Gauging the greenback’s purchasing power against its primary peers the USD index headed south by about 0.3% showing 97.34.
On Tuesday, policymakers started a two-day gathering, widely anticipated to bring no changes to interest rates when the decision is revealed a day later.
In 2019, the major US bank changed its tune because fears over global surge as well as poor inflation made it retreat from previous estimates that it would lift rates twice this year and also be patient enough with further tightening.
However, financial markets have gone further, pricing in over a 60% likelihood that the major US bank will have interest rates cut in December.
Last Friday, the evergreen buck started its current stretch of dives against the backdrop of signs of decreasing price pressures. Additionally, inflation data uncovered with first-quarter surge numbers the previous week as well as the core personal consumption expenditures price index for March have seen the greenback rebound from near two-year maximums.
The currency pair rallied versus the evergreen buck because better-than-anticipated economic surge in the euro zone backed the euro.
Furthermore, cable was boosted on reports that cross-party negotiations between ruling Conservatives as well as the opposition Labour Party over Brexit, and Britain’s departure from the EU is demonstrating decent progress.
Tokyo markets are unavailable this week for a holiday that experts tell exacerbate volatility because of the lack of liquidity, although the Japanese yen still managed to go up to three-week maximums.
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Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.