The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
Evergreen buck goes up
On Tuesday, the evergreen buck surged due to the fact that China and America are on the verge of extending trade negotiations into Wednesday.
Officials from the two countries are expected to meet in Beijing and negotiations are going to be extended to a third day, backing a hoped that the two leading economies around the globe could have their differences resolved before a March 1 deadline.
At the U.S. delegation's hotel, Assistant Secretary for Fossil Energy at the US Department of Energy, Steven Winberg confirmed the extension to journalists. However, the US statesman didn’t answer other questions.
Evaluating the purchasing power of the American dollar versus its primary peers the USD index jumped by about 0.3% ending up with 95.55.
The evergreen buck surged versus the Japanese yen. The currency pair USD/JPY headed north by 0.05% trading at 108.73.
Market participants are also looking ahead to a speech from US leader, in which he’s anticipated to address the government shutdown as well as building a wall on the border with Mexico. American leader has told that he won’t have a budget signed unless it includes financing for that wall. His remark has resulted in an impasse with Congress.
In addition to this, the common currency headed south in the face of a sudden dive in German industrial output that sparked fears of a deceleration in the region and could hinder the European Central Bank’s initiative to wean off its stimulus programs. As a matter of fact, the currency pair EUR/USD tumbled by 0.34% being worth 1.1433. The UK pound dived by 0.4% against the backdrop of ongoing Brexit pressure because the vote for a withdrawal pact goes before Parliament next week. The currency pair GBP/USD hit 1.2720.
The currency pair AUD/USD slumped by 0.3% being worth 0.7127. NZD/USD went down by 0.5% hitting 0.6713, while USD/CAD stood still at 1.3295.
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.
Stocks, oil and GBP gain on risk-on sentiment
Investors weigh reopening economies against the growing US-China tension. Which impulse will be stronger?
Here you’ll find fresh news that drive the market today.