USD/CHF and EUR/CHF rose to tactical highs. What's next?
Evergreen buck is intact vs. yen
On Monday, the US currency was intact versus the Japanese yen, taking a breather after the previous week's surge. The US currency was suppressed in the face of growing worries over a US-China trade clash.
The US currency was last seen at 106.32 yen, having soared over 1.5% the previous week, demonstrating its greatest weekly revenue since September 2017.
The greenback had tacked on versus the Japanese currency the previous week, backed by signs that China as well as the United States were working behind the scenes for the purpose of averting a tough trade conflict, and also expectations for a diplomatic success over North Korea's nuclear program.
Apparently, the resulting surge in risk appetite put pressure on the safe-haven yen. The Japanese currency is prone to soaring in times of market turmoil.
Considering the simmering American-Chinese trade tensions, some experts tell that the evergreen buck’s gains versus the Japanese yen might be restricted in the nearer future.
China has dared to impose additional duties of up to 25% on 128 American products including frozen pork and on wine as well as certain nuts and fruits, responding to American tariffs on imports of such metals as steel and aluminum, as China's finance ministry informed.
The duties to take effect on Monday, actually match a list of potential duties on $3 billion in American goods released on March 23 by China.
Financial markets haven't demonstrated much reaction to China's announcement, partly due to the fact that the Chinese government had already warned of such measures.
On Monday, Asian shares demonstrated resilience, starting the fresh quarter with moderate revenues after a decent performance by global shares the previous week.
Versus a group of six key counterparts, the evergreen buck was last seen at 89.971, having rebounded from a one-week maximum of 90.178 hit last Thursday.
Eurozone, France, and Germany will publish the flash services and manufacturing PMIs on February 19, from 10:15 to 11:00 MT time
Australia will publish the employment change and unemployment rate on February 18, at 02:30 MT time.
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.