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.
Evergreen buck heads south on dismal job surge
On Friday, the US currency dipped after data uncovered that the American economy only managed to generate 20,000 jobs last month, which is below expectations due to the fact that the US economy is nearly at full employment.
The numbers actually indicate rather a mixed picture of the American economy because the unemployment rate went down more than anticipated and wage inflation speeded up beyond estimates.
Assessing the purchasing potential of the major US currency versus its primary peers the USD index declined by 0.35% trading at 97.285.
Moreover, trade tensions result in a weakening greenback.
In addition to this, China and the United States have pushed back their tentative plans for a summit to have a trade agreement signed because of unresolved differences that raise doubts that the world’s two leading economies will resolve their year-long clash.
The evergreen buck went down versus the safe-haven Japanese yen. As a matter of fact, the currency pair USD/JPY headed south by nearly 0.2% ending up with a result of 111.68.
Aside from that, the Canadian dollar managed to surge. The currency pair USD/CAD slumped by about 0.19% trading at 1.3425, reacting to data that disclosed that the Canadian economy generated more jobs than anticipated in February.
Furthermore, the currency pair AUD/USD tacked on by about 0.3% being worth 0.7032. As for NZD/USD, this currency pair dived by 0.6% hitting 0.6794.
Additionally, the UK pound decreased. The currency pair GBP/USD slipped by 0.18% trading at 1.3058 because Prime Minister Theresa May told that nobody knows what would occur if her Brexit deal is rejected by Parliament.
The common currency went up because of the weaker evergreen buck. The currency pair EUR/USD tacked on by up to 0.3% trading at 1.1230.
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This week Apple, Microsoft, Google, Facebook, Pfizer, and other large US companies will deliver earnings reports…
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…