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Evergreen buck pares back profits after inflation data
On Wednesday, the major US currency managed to pare back earlier profits. It’s because inflation data underpinned the Fed’s policy of lifting interest rates at a gradual tempo.
Indicating the greenback’s purchasing power versus its several key counterparts the USD index went down by approximately 0.27% coming up with 96.88.
As a matter of fact, Wednesday’s data showed that the annual core consumer price index or CPI for short managed to surge by up to 2.1%. The given outcome turned out to be less than anticipated.
By the way, core prices are considered by the Federal Reserve to be a better gauge of longer-term inflationary pressure due to the fact that they exclude the volatile energy and food categories. The US major financial institution normally tries to meet a 2% core inflation objective or less.
The evergreen buck stood still versus the Japanese currency. The currency pair USD/JPY was seen at 113.81. In addition to this, the Canadian dollar headed north. The currency pair USD/CAD dived by 0.03% coming up with a reading of 1.3235.
Apart from that, the UK currency tacked on following news that the European bloc and the United Kingdom have finally reached a draft pact on Brexit. Moreover, a statement from UK Prime Minister Theresa May is scheduled on 12:00 PM ET.
The currency pair GBP/USD surged by up to 0.25% being worth 1.3011
As for the common currency, it went up, although it was held back by a clash between Rome and Brussels over Italy’s budget. The matter is that the European Commision disapproved Italy’s 2019 budget due to the fact that it breaks EU fiscal regulations. However, Italy has stuck to its objective in a re-submitted draft budget.
The currency pair EUR/USD jumped by 0.19% trading at 1.1310.
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.