Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Evergreen buck heads north
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts.
Tracking the purchasing potential of the American dollar against a number of its primary rivals the USD index surged by 0.31% being worth 96.57.
On Friday, the Labor Department told that nonfarm payroll employment headed north by up to 250,000 jobs last month, surpassing analysts’ forecasts for 193,000 new jobs. Meanwhile, the unemployment rate didn’t change, sticking with 3.7%.
Besides this, month on month average hourly earnings gained 0.2%, and also 3.1% for the year through last month, which is line with analysts’ estimates.
The better-than-anticipated jobs data keeps the key US bank on track for another lift in December, provoking a tightening cycle, which could moderately overshoot the neutral rate after a while.
The evergreen buck stood firm versus the safe-haven yen notwithstanding a selloff on Wall Street because traders put much value to US-China trade clashes. Larry Kudlow, White House economic advisor debunked reports that US leader had urged the US government to put together a trade pact with China.
The currency pair USD/JPY surged by 0.39% ending up with Y113.16.
In addition to this, the currency pair GBP/USD inched down by 0.43% being worth $1.2957, although remained on track for its best trading week since March on the back of a powerful leap on Thursday, when Britain’s major financial institution indicated more interest rate lifts could be real if Britain's departure from the European bloc is trouble-free.
Meanwhile, the currency pair USD/CAD managed to jump by 0.18% being worth C$1.3109 because a dive in crude prices and also soft jobs data from Canada kept a lid on the crude-price-sensitive Canadian dollar.
The currency pair EUR/USD headed south by 0.20% trading at $1.1385.
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 Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.