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 goes down on Trump’s menace to veto spending bill
On Friday, the evergreen buck turned to be lower versus a pack of other main rivals. It’s because worries of a global trade conflict kept the US currency down. As for another crucial factor, it was Donald Trump’s outrageous threat to have the spending bill vetoed.
Appreciating the US currency’s value versus a trade-weighted group of six leading rivals, the US dollar index headed south 0.30% coming up with a reading of 89.20.
On Thursday, Trump rolled out duties on $50 billion worth of China’s imports in response to this Asian country’s unfair capture of American intellectual property.
As for China, this country instantly responded with plans to impose its own duties against the United States, thus driving worries among traders of a global trade conflict.
The key US bank’s decision to have the interest rate raised by about 25 basis points on Wednesday and also step up the overall tempo of tightening has also put pressure on the US currency.
Aside from that the US President threatened to have the $1.3 trillion spending bill vetoed, which was approved yesterday due to the fact, it doesn’t provide financing for a deal with the 800,000 Deferred Action for Childhood Arrivals recipients or a border wall. It’s expected that the veto would have the US government shut down at midnight.
The evergreen buck went down to a two year minimum versus the safe haven yen. The currency pair USD/JPY went down 0.10% being worth 105.17.
The common currency headed north, with the currency pair EUR/USD adding 0.32% being worth 1.2341.
The currency pair GBP/USD acquired 0.31% showing 1.4139 following news that the European Union had decided to adopt a negotiation stance on an upcoming trade tie with Great Britain after it leaves.
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?
This week Apple, Microsoft, Google, Facebook, Pfizer, and other large US companies will deliver earnings reports…
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…