Will the US economy help the greenback?
The United States will release the advance GDP growth rate for the previous quarter on July 30, at 15:30 MT time.
Evergreen buck keeps to 2018 maximums
On Tuesday, the evergreen buck kept to the highest levels of 2018 against the backdrop of hopes for higher American interest rates, while the UK currency rebounded from one-and-a-half week minimums notwithstanding everlasting Brexit uncertainty.
Indicating the greenback’s purchasing potential against a number of its primary rivals the USD index hit 97.41, which is not far from Monday’s 16-month maximum of 97.53.
Eventually, demand for the evergreen buck was backed after the previous week the Federal Reserve hinted that interest rates would probably ascend in December and also at the beginning of 2019 because the American economy seems to be firm enough on nearly every front.
The greenback was trading close to five-week peaks versus its Japanese rival. The currency pair USD/JPY surged by up to 0.23% trading at 114.10.
Market sentiment was backed by expectations that trade clashes between China and America would recede after reports that China's key trade negotiator was geared towards visiting the United States ahead of a gathering between the two countries' presidents later this month.
The UK currency managed to regain ground. The currency pair GBP/USD added 0.33% ending up with a result of 1.2891. However, profits were held in check against the backdrop of worries that the United Kingdom could leave the European bloc even without a Brexit deal.
On Monday, the British pound reached a minimum of 1.2826 versus the evergreen buck, which happens to be the weakest value since November 1.
The common currency generally surged. The currency pair EUR/USD added 0.1% showing 1.1230. The euro struggled to make headway with market participants focused on the everlasting clash between Rome and Brussels over Italy’s budget.
In October, the European Commission didn’t approve Italy's 2019 budget due to the fact it violated EU fiscal rules and the Italian cabinet is expected to submit a modified budget plan until later Tuesday.
Similar
USD is waiting for the jobless claims!
The US unemployment claims are announced on Thursday at 15:30 MT time.
Will the Australian Monetary Policy Meeting minutes support the AUD?
The Australian Monetary Policy Meeting Minutes are announced on Tuesday at 04:30 MT time.
Latest news
All eyes on AUD
The RBA will make a rate statement on August 4 at 7:30 MT time.
Main market movements on July 31
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
Main market movements on July 30
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
Deposit with your local payment systems
