Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Evergreen buck is stuck in a range
On Friday, the evergreen buck is settling into rather a tight band ahead of the crucial American employment report.
The greenback obtained just short-lived support from Trump’s remarks, indicating that a trade deal is still four weeks away and provided no details about the unresolved issues.
Estimating the greenback’s purchasing potential in contrast with its main peers the USD index hit 96.852, tumbling by 0.1% from its overnight maximum.
The UK pound is also range-bound because the financial markets wait for the result of efforts by UK Prime Minister Theresa May as well as opposition leader Jeremy Corbyn to come to a compromise on an alternative to the Withdrawal Agreement discussed with the European bloc.
The UK currency has been underpinned by Wednesday’s vote that further constrained the UK cabinet’s ability to pick crashing out without transitional deals in place at the end of next week. As for a no-deal Brexit, it still appears to be the legal default, unless the EU members agree unanimously to have the deadline extended. EU Council President Donald Tusk offers a 12-month extension, while French Finance Minister Bruno Le Maire told that there should a persuasive reason.
The common currency is a bit stronger after German industrial output in February went up a bit more than anticipated, taking the edge off Thursday’s downbeat mood over another slump in manufacturing orders. Brexit woes along with the global deceleration have a strong impact on German industry, as some experts explained.
Additionally, the Turkish lira is still pressured after a smaller-than-anticipated ascend in the major bank’s foreign reserves the previous week. Meanwhile, the Japanese yen was a bit weaker after dismal household spending data.
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 US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
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.