What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
Evergreen buck heads south on Fed worries
On Wednesday, the evergreen buck slumped versus most of its counterparts, suppressed by a mixture of downbeat factors including heightened fears over a partial American government shutdown as well as tension between the White House and the country’s key bank.
Worries of an American and global economic deceleration have sent American 10-year yields down by nearly 25 basis points in December, contributing to the soaring strain on the evergreen buck and further clouding its outlook.
As some financial experts pointed out, moderating American surge and political tensions aren’t favorable for the evergreen buck and they expect ongoing weakness.
The evergreen buck has struggled particularly against its Japan’s rival, losing ground for up to eight trading marathons because a broad risk-off move in financial markets brought benefits to the Japanese yen. On Wednesday, it attempted to stabilize in early Asian trade, soaring by up to 0.1% on the Japanese yen to 110.43.
Some experts are assured that the steep dive in American 10-year treasury gains has affected the greenback’s performance versus its rivals. Now American 10 year paper is soaring by up to 2.73%, having dived from 3% in early December.
As for the common currency and the UK pound, they managed to ascend by 0.2% each, ending up with respectively $1.1415 and $1.2705. The Australian dollar gained 0.1% trading at $0.7043.
For recent months the evergreen buck has struggled to shake off a soaring list of bearish factors, generally provoked by rumors over the outlook for American interest rates, diving bond gains as well as the dip in crude prices.
The previous week, the primary US financial institution had its interest rates increased for the fourth time in 2018, and mostly kept to its plans to lift rates in 2019 notwithstanding heightened economic risks.
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!