Market updates on September 12
ECB meeting is on the agenda. Will the EUR get weaker?
Evergreen buck is nearly intact
On Thursday, the evergreen buck was nearly intact, while its Chinese rival slumped following the arrest of the CFO of Huawei Technologies.
Estimating the purchasing power of the US currency in contrast with its main counterparts the USD index accounted for 96.970, decreasing 0.04%.
The evergreen buck could still be pressured until this month's Federal Reserve gathering as long-term Treasury gains might not be able to provoke a rebound until financial markets see the major bank’s stance on policy as well as the economy.
This week the greenback is under pressure against the backdrop of worried as for economic surge following an inversion of the American Treasury yield curve.
This week, the two-year/10-year spread demonstrated its flattest outcome for over a decade in the face of a steep dive in long-term rates. By the way, a flatter curve is considered to be a gauge of a decelerating economy.
As a matter of fact, the currency pair USD/CNY managed to ascend by 0.32% reaching 6.8777. On Wednesday, Canada’s Department of Justice told that CFO of Huawei, Meng Wanzhou was detained in Vancouver because of violations of American sanctions. According to some sources, she’s subject to extradition to America.
The news arose after America and China agreed to stop the planned leap in levies from 10% to 25% on China’s imports earlier this week.
The Yuan reference rate was set by China’s key financial institution at 6.8599 versus yesterday’s reading of 6.8476.
The currency pair AUD/USD went down by 0.6% trading at 0.7225. Thursday’s data disclosed that In October, Australia trade surplus amounted to AUD 2.3 billion in contrast with the anticipated AUD 3.2 billion from a Reuters survey.
Additionally, the currency pair GBP/USD slumped by 0.05% reaching 1.2727. Some experts are assured that the UK currency could dived by 2.75% if Britain’s legislative body rejects the Brexit deal next week.
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The British pound falls further ahead of the Cabinet meeting
The news that opposition lawmakers plan to stop Boris Johnson to leave the European Union without a deal increased the political uncertainties in the UK.
The market awaits NFP
The level of non-farm payrolls (NFP), also known as non-farm employment change will be published on September 6, at 15:30 MT time.
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Market updates on September 13
The retail sales for the US in focus today
"Buy the rumor - sell the fact" action for USD/TRY
During today's Turkish central bank meeting, the market anticipated a rate cut between 200-300 pips.
Traders await the releases for the USD
The USA will publish the level of retail sales and core retail sales on September 13, at 15:30 MT time.
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