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Evergreen buck goes up ahead of Powell’s speech
On Wednesday, the evergreen buck jumped to a one-and-a-half-week maximum due to the fact that market participants awaited further signs from Fed Chair Jerome Powell on the outlook for the country’s monetary policy.
Jerome Powell is expected to come with a statement in Washington D.C at a town hall gathering with teachers.
Gauging the American dollar’s purchasing strength versus its major rivals the USD index shot up by up to 0.16% coming up with 95.965.
The previous week the Federal Reserve announced an end to its stance to tighten monetary policy. It was provoked by fears over decelerating economic surge both abroad and domestically.
In addition to this, American leader’s State of the Union address on Tuesday generated a minor movement due to the fact financial markets digested the prospects of one more government shutdown if the US legislative body fails to meet President’s demand for a border wall.
The evergreen buck declined versus the Japanese yen. As a matter of fact, the currency pair USD/JPY inched down by about 0.25% concluding the trading session at 109.67.
In addition to this, the UK currency revived a bit having dived to a two-week minimum of $1.2926 against the backdrop of reports that the European bloc wouldn’t reopen the Brexit divorce pact negotiated in 2018. The currency pair GBP/USD rallied by up to 0.15% hitting 1.2960.
The common currency dipped following dismal data from Germany. The currency pair decreased by 0.25% showing 1.1382.
The currency pair AUD/USD kept to a 1.4% minimum of 0.7129 right after Australian central bank governor Philip Lowe told that the major bank might lower interest rates.
The currency pair NZD/USD slumped by 0.7% being worth 0.6842. The Canadian dollar dived. The currency pair USD/CAD rallied by 0.46% reaching 1.3184.
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 United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.