The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
Evergreen buck heads south on inflation data
On Wednesday, the evergreen buck went down. It occurred due to the fact that inflation data underlined hopes that the major American financial institution is going to speed down its tempo of rate lifts next year.
As the Labor Department pointed out, its consumer price index stood still in contrast with November, speeding down from the 0.3% leap observed in October. Market experts had predicted a 0.1% jump.
Gauging the purchasing potential of the American dollar versus its primary rivals the USD index went down by nearly 0.3% ending up with 97.09.
The greenback has been under recently pressured in the face of expectations that the Federal Reserve is going to pause its tempo of interest rate lifts in 2019, notwithstanding an anticipated rate hike next week.
In addition to this, the UK pound managed to gain because traders bet that UK Prime Minister Theresa May will easily survive a vote of no confidence. Her party reached the threshold required to trigger the vote and it’s expected to occur on Wednesday between 6:00 PM and 8:00 PM London time.
The currency pair GBP/USD managed to soar by up to 1.2% trading at 1.2620.
The evergreen buck was a bit lower versus the safe-haven Japanese yen. The currency pair USD/JPY went down by 0.07% trading at 113.29. It’s a common fact that in times of uncertainty, traders are prone to investing in the Japanese yen that is considered to be a reliable asset during periods of risk aversion.
As for the common currency, it jumped because of the lower greenback. The currency pair EUR/USD added 0.4% trading at 1.1359.
The currency pair NZD/USD dived by 0.3% trading at 0.6853. The currency pair AUD/USD surged by 0.2% trading at 0.7219. The Canadian dollar gained. The currency pair USD/CAD tumbled by 0.3% reaching 1.3351.
The US CPI and core CPI are due at 15:30 MT time on May 12.
April seasonal patterns weren’t supposed to work, but somehow they did. Even a strong fundamental issue such as the global recession amid the coronavirus couldn’t overwhelm it. That’s why May seasonal patterns may work as well.
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