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 heads south due to American government shutdown
On Friday, the major American currency went down versus other key counterparts. It’s because the American government had to face another shutdown since the beginning of 2018. Another bitter news is that Congress had a vote on a budget deal postponed.
On Thursday, the midnight target date to approve the US budget deal was missed. It could be explained by a prolonged speech, which was delivered by Senator Rand Paul. The statesman actually objected to up to $300 billion in the country’s deficit spending, which was specified in the bill, telling that it would have the Treasury looted.
On Wednesday, American congressional leaders had managed to agree on a two-year budget pact to increase government spending by nearly $300 billion.
As a matter of fact, the US currency’s losses were quite limited. The reason is that higher American bond revenues grew higher once again. For example, the profit on benchmark 10-year American Treasury notes turned to be good enough – it was still keeping to recent four-year maximums, hit on Friday.
Estimating the greenback’s value versus a group of six crucial rivals, the US dollar index headed south 0.08% being worth 90.12. The given outcome is off last session's two-and-a-half week maximum of 90.46.
The common currency along with the British pound managed to gain. The currency pair EUR/USD tacked on 0.12% showing an outcome of 1.2262. Meanwhile, the currency pair GBP/USD inched up 0.34% trading at 1.3959.
In addition to this the Japanese yen slumped, with USD/JPY climbing 0.19% demonstrating a reading of 108.95. Another USD/CHF was intact, sticking to 0.9368.
The Australian and New Zealand dollars didn’t change. The currency pair AUD/USD reached 0.7779, while NZD/USD reported 0.7213.
Besides this, the currency pair USD/CAD was intact, posting an outcome of 1.2597.
Let’s consider the best and the worst-performing assets as Monday’s session kicks in.
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