The South African Finance Minister is delivering a budget speech today. There may be a strong impact on ZAR, so what's going to happen?
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.
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