How to trade the JPY?
Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
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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Latest news
Increased Volatility is Coming
The Reserve Bank of Australia (RBA) will make a statement and release a Cash Rate on February 7, 05:30 GMT+2. It's among the primary tools the RBA uses to communicate with investors about monetary policy.
Market Crash Incoming?
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
What Currency Will Overperform?
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
