Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Evergreen buck jumps
On Monday, the evergreen buck managed to leap versus other key currencies in the face of a divergence of monetary policies of the United States and the European Union. The Japanese yen was still underpinned because of the everlasting tension in international relations that backs demand for safe-haven assets.
The US dollar index, normally utilized for gauging the purchasing power of the US currency against six main rivals, went up by 0.26% hitting 94.69, getting closer to the 95.13 maximum for 11 months that was reached on Friday.
For the last week, the US dollar index ascended by 1.33% that turned out to be the greatest surge for seven weeks. On Wednesday, the key US bank pointed to a quicker rate of tightening monetary policy. Additionally, on Thursday the EU’s major financial institution proposed a softer version of monetary policy.
The common currency dived versus the greenback. The currency pair EUR/USD slumped 0.37% being worth 1.1567 following a 1.34% dive over the previous week because the ECB uncovered its intention to keep the interest rate intact until the middle of 2019.
The evergreen buck went down a bit versus Japan’s currency. The currency pair USD/JPY slumped to 110.57 following a three-week maximum of 110.90 reached on Friday.
Worries as for the tension in international trade resumed as soon as Donald Trump told about the introduction of tariffs worth $50 billion to Chinese goods. It makes China roll out similar measures, thus spurring the danger of global economic surge.
The Japanese yen managed to gain extra support after an earthquake took place near Osaka.
Demand for Japan’s currency always goes up in times of political uncertainly.
Meanwhile, the Canadian dollar stayed close to the year’s minimum recorded on Friday. The currency pair USD/CAD showed an outcome of 1.3186.
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.
A new week means new trading opportunities! Here are some events that can fluctuate the market actively…
The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
The United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on August 5, 15:30 GMT+3.