Will the CPI Crash the USD?
The most impactful releases of this week will fill the market with volatility and sharp movements. Be ready to take action!
Evergreen buck holds modest gains after American jobs report
On Monday, the evergreen buck managed to retain modest gains right after an American jobs report soothed fears of a steeper deceleration in the world's number one economy.
Friday’s data disclosed that nonfarm payrolls went up by a solid 196,000 last month, topping expectations and providing riskier assets with much-needed support.
Versus a pack of key counterparts, the USD index kept to 97.383 having soared 0.1% on Friday.
The evergreen buck’s profits were tamed because some components of the American employment report dropped a hint that the US economy wasn't already firing on all cylinders.
In March, wage gains had speeded down, with average hourly earnings heading north by just 0.1% having rallied by 0.4% in February. The moderation in wage surge backed the Fed’s decision to have further interest rate lifts suspended in 2019.
The China-US trade negotiations don't look to conclude any time soon and traders will shift their focus to Europe soon, as Brexit approaches its next milestone on April 12.
On Friday, Chinese and American negotiators wrapped up their latest round of trade negotiations and were expected to resume talks next week in an attempt to secure a pact, which would resolve a long-lasting tariff conflict.
The UK’s departure from the EU looms on April 12, although British Prime Minister Theresa May has asked Brussels to have the exit delayed until June 30 with minor progress being achieved towards Britain’s departure.
On Friday, the UK pound went down to a one-week minimum of $1.2987, as the Netherlands and France expressed doubt regarding May's plan to further postpone Brexit.
As for the common currency, it was intact, keeping to $1.1218 having slumped a bit versus the evergreen buck on Friday.
Versus the Japanese yen, the evergreen buck was a bit lower at 111.65 yen having tacked on to a three-week peak of 111.825 on Friday reacting to the American jobs report.
Similar
Three Currencies to Watch This Week
We prepared an outlook of major events of this week. Check it and be ready!
The Fed won't miss these releases!
Here you'll find what awaits the market this week, from the CPI release to a possible gold plunge.
Latest news
Gold Rises as Central Banks Buy More
About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.
US Evades Default This Time
Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!
USD Gains Momentum
The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!
