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 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.
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 US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
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.