Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Evergreen buck inches up on firm services and housing data
On Tuesday, the evergreen buck surged due to the fact that activity in the American service sector managed to pick up.
Assessing the US dollar’s purchasing power against its primary rivals the USD index tacked on by up to 0.29% ending up with an outcome of 96.893.
The evergreen buck managed to ascend right after the Institute of Supply Management revealed that its non-manufacturing purchasing managers’ index or PMI for short went up to 59.7 from January’s result of 56.7. A separate report revealed that new home sales went up to a seven-month maximum in December.
In addition to this, China’s lower surge estimates overshadowed news that China and the United States could formally sign a trade pace on March 27.
On Tuesday, China came up with a statement that it was targeting economic surge of 6.0% to 6.5% this year. The given objectives is less then the 6.6% leap recorded the previous year that was already the lowest result for decades.
In addition to this, the evergreen buck managed to rally versus the safe-haven Japanese yen. The currency pair USD/JPY went up by about 0.2% trading at 111.92.
Aside from that, the UK currency went down due to the fact that Brexit talks resumed. As a matter of fact, the currency pair GBP/USD slipped by 0.5% hitting 1.3118. The common currency went down against the backdrop of hopes that the European Central Bank is on the verge of providing banks with cheaper funding at its next policy gathering on Thursday. As a result, the currency pair EUR/USD dived by 0.34% showing 1.1296.
The currency pair AUD/USD went down by 0.4% hitting 0.7065. NZD/USD headed south by about 0.6% trading at 0.6775. The Canadian dollar slumped. The currency pair USD/CAD rallied by 0.4% showing 1.3354.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.