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On Monday, the evergreen buck kept diving for a third day in a row versus its counterparts on soaring bets the Federal Reserve will press the pause button on its rate lift cycle in the near months.
Despite firm monthly American jobs data for December the previous week, financial analysts are assured that the world's number one economy is actually losing momentum with Fed Chair Jerome Powell's remarks contributing to expectations that the US major financial institution might adopt a milder outlook.
On Friday, Fed Chair revealed to the American Economic Association that the major bank isn’t on a preset path of interest rate lifts and that it’s going to be quite sensitive to the downside risks financial markets are actually pricing in.
Versus a basket of its counterparts, the evergreen buck went down 0.25% hitting 95.92, which is close to a 2-1/2 month minimum recorded the previous week.
Soaring expectations that the major US bank is going to suspend its rate lift cycle is putting pressure on the greenback and that will be a crucial factor in the nearer future, as some market experts pointed out.
The evergreen buck managed to outperform other currencies last year because of the major US bank being the only key financial institution to lift interest rates. If the Federal Reserve holds interest rates this year, market experts see a slim likelihood of further greenback appreciation. This year, financial markets expect no more rate lifts from the major US bank.
Meanwhile, the common currency and the Australian dollar became the top performers, with the latter also deriving benefits from the weekend news of soaring policy stimulus in China.
The Australian dollar managed to surge by 0.5% trading at $0.7140.
The evergreen buck surged by 0.2% against the offshore Yuan reaching 6.8483.
On Wednesday, the Japanese yen headed south versus its major peers because investor risk appetite improved during Asia trade, although worries over decelerating global surge and US-China trade clashes will probably cap gains in risky assets…
On Tuesday, the evergreen buck managed to stabilize in Asia because the International Monetary Fund had its 2019 as well as 2020 global surge forecasts cut overnight…
On Monday, crypto assets tumbled due to the fact that the Organization for Economic Cooperation and Development drew attention to the necessity of the global regulation of initial coin offerings…
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…
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