Will the CPI Crash the USD?
The most impactful releases of this week will fill the market with volatility and sharp movements. Be ready to take action!
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
Three Currencies to Watch This Week
We prepared an outlook of major events of this week. Check it and be ready!
The Fed won't miss these releases!
Here you'll find what awaits the market this week, from the CPI release to a possible gold plunge.
Latest news
The US Dollar Is Correcting
Inflation in Europe was released better than the forecast. The preliminary fact was published at 4.3%. What's happening in the markets?
Bearish Signal For The USD
XAUUSD fell below 1900 for the first time since March 2023. Meanwhile, the US dollar index gives a bearish signal. Read the full report to learn more!
Current Risks for Developed Economies
Oil prices are rising while the US government is on the verge of shutting down. How will it affect the market?
