What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
Evergreen buck rallies to a 7-week maximum
On Wednesday, the US currency rallied and reached a maximum of seven weeks versus the group of other leading rivals due to the growth of yield of American government bonds. The yield of 10-year US bonds tacked on to a maximum since early 2014.
The US dollar index, appreciating the purchasing power of the US currency versus the trade-weighted basket of six key currencies, soared 0.31% ending up with 90.84. That’s the highest result since March 1.
The dollar's exchange rate has tacked on due to the surge in yields in American government bonds as well as the prospect of accelerating the Fed's interest rate increase in 2018.
A higher interest rate, as a rule, appears to be a support for the evergreen buck, as it makes dollar assets more attractive for profit-seeking investors. On Tuesday, the revenue of 10-year US government bonds managed to surpass 3% for the first time since 2014, which is a indication of investor confidence in the bright future of the American economy.
Published on Tuesday, data showed that the volume of construction of new homes and consumer confidence in the USA appeared to be better than analysts' estimates, which strengthened the forecasts of the stable surge of the American economy in the nearer future.
The Japanese yen headed south to a minimum against the evergreen buck for 2.5 months. The currency pair USD/JPY managed to tack on 0.38% coming up with 109.23.
On Tuesday, the evergreen buck headed south against the yen after a decline in quotations on US exchanges provoked a jump in demand for the Japanese currency. Yesterday's trading on Wall Street concluded with an abrupt dive in indices amid concerns of companies as for raising the cost of borrowed funds as a result of growing revenues of American bonds.
What will happen? US consumer confidence will be announced at 5:00 MT (GMT+3) on Tuesday, July 27…
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.
Our analyst discusses the latest news and shares his trade ideas on gold, EUR/USD, and S&P 500. Jump in!
The Bank of England will publish a monetary policy statement and update on the interest rate on Thursday, at 14:00 MT time.
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).