The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
Evergreen buck inches down on dovish Fed remarks
On Wednesday, the evergreen buck headed south following dovish remarks from Federal Reserve representatives that spurred expectations that the US major financial institution will pause its tempo of interest rate lifts.
Gauging the evergreen buck’s purchasing potential versus a number of its primary counterparts the USD index inched down by nearly 0.72% ending up with a reading of 94.79.
At an event in Tennessee, Fed President Jon Bostic told that the rate lift in December will most probably ramp up rates to neutral and the US major bank should be patient and carefully consider economic risks.
Market participants are also looking ahead to the minutes from the US major bank’s December gathering to be uncovered at 2:00 PM ET. Investors are going to closely watch the notes for any clues of probable rate lifts in the coming year, in particular after comments from Fed Chair Jerome Powell the previous week. The statesman told that the Fed would rein in monetary policy if required.
The currency pair USD/CAD headed south to a one-month minimum after the Bank of Canada made up its mind to keep its benchmark interest rate on hold, citing the current trade feud between Canada and the United States as well as deceleration global demand. The currency pair USD/CAD went down by 0.5% being worth 1.3208.
The UK pound managed to grow, while still suppressed over Brexit. As a matter of fact, the currency pair GBP/USD went up by 0.60% trading at 1.2791. The future of the United Kingdom still appears to be cloudy because the country’s cabinet won’t probably get another deal in case the draft bill fails, spurring the likelihood of a hard Brexit come March 29.
The currency pair EUR/USD leaped by 0.83% hitting 1.1533. AUD/USD surged by 0.7% being worth 0.7188, NZD/USD ascended by 1.23% trading at 0.6804.
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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