The United States will release the advance GDP growth rate for the previous quarter on July 30, at 15:30 MT time.
Evergreen buck inches down for a third day
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.
The US unemployment claims are announced on Thursday at 15:30 MT time.
The Australian Monetary Policy Meeting Minutes are announced on Tuesday at 04:30 MT time.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…