What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
Evergreen buck heads north
On Thursday, the evergreen buck managed to leap because its counterparts struggled, reacting to dovish stance from major financial institutions, while the Japanese yen tacked on as investor fears escalated.
The Reserve Bank of New Zealand joined an extending list of major banks, which had become dovish against the backdrop of signs of a decelerating global economy, telling that its next move in interest rates would be having them cut.
With numerous currencies on the defensive, the evergreen buck has brushed aside a tumble of American Treasury yields to 15-month minimums. lows. Versus six key rivals, the USD index inched up by 0.3% hitting 97.028 and demonstrating a third winning day in a row.
Some experts pointed out that traders had gone too far in anticipating an American rate cut in 2019, but the evergreen buck is still vulnerable.
The common currency slumped to $1.1237. The euro has dived 0.5% this week as the 10-year German bund gain went down to a 2 1/2-year minimum of minus 0.09%. In fact, dovish remarks from ECB Governor Mario Draghi failed to back the common currency on Wednesday.
The New Zealand as well as Australian dollars recovered after the New Zealand major financial institution’s dovish shift pushed both currencies down on Wednesday.
Surge-sensitive currencies have recently taken a beating on soaring risks to the world economy, actually highlighted by the tumble in American bond gains that financial markets have interpreted as a signal of an approaching meltdown.
The Japanese yen headed north by 0.4% reaching 110.13 against the greenback because Japanese stocks dived, although it was still away from Monday's six-week maximum of 109.70.
The UK pound dived by 0.4% hitting $1.3135.
What will happen? US consumer confidence will be announced at 5:00 MT (GMT+3) on Tuesday, July 27…
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.
Read a short market wrap before trading today!
The United States will publish the non-farm employment change, also known as non-farm payrolls or NFP at 15:30 MT (GMT+3) time on August 6.
Our analyst discusses the latest news and shares his trade ideas on gold, EUR/USD, and S&P 500. Jump in!