The OPEC meeting and the US Nonfarm Payrolls rocked the market last week. The market is torn between optimism about the global economic recovery and concerns about the new coronavirus strains.
Evergreen buck loses momentum
On Monday, the major US currency went down because expectations for a trade pact between China and America ramped up investor appetite for risky assets, including stocks as well as emerging market currencies.
Assessing the purchasing potential of the greenback against a number of its key rivals the USD index slipped by 0.08% being worth 96.28.
Emerging currencies, including the South African rand as well as the Mexican peso that don’t appear to be part of the basket demonstrated their highest result for two weeks versus the evergreen buck because some of the safe haven flows of the last weeks unwound. As for other commodity currencies, including the Australian and New Zealand dollars, they kept finding buyers long after their domestic markets became unavailable.
On Sunday, American leader wrote on Tweeter that he would push back a March 1 deadline for fresh levies on $200 billion worth of China’s goods, and meet with Chinese leader Xi Jinping in Florida at his Mar-a-Lago estate to conclude negotiations.
The news spurred expectations that the two will come to an agreement soon. However, Xinhua, official Chinese news agency as well as others pointed to persisting differences between the two countries.
The evergreen buck managed to tack on versus the safe-haven yen. The currency pair USD/JPY headed north by up to 0.12% concluding the trading session at 110.79.
Additionally, the common currency went up because of the weaker evergreen buck. The currency pair EUR/USD soared by 0.13% being worth 1.1355.
As for the UK currency, this asset managed to recover a bit, although it’s still staying in a holding pattern because the political process governing Brexit keeps unrolling.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
This week Apple, Microsoft, Google, Facebook, Pfizer, and other large US companies will deliver earnings reports…
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…