Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Evergreen buck rallies to fresh peak
The evergreen buck came off Wednesday’s peak in Europe trade, although it’s still firm enough against the backdrop of the news telling that the American economy still demonstrates decent strength.
The common currency slumped to its lowest value for almost two years versus the evergreen buck late on Wednesday, reaching at $1.1141 following dismal business polls from France and Germany earlier in the day. The UK pound also keeps languishing at $1.2911.
The USD index, gauging the greenback’s purchasing power versus its main rivals rallied to its highest value since May 2017 overnight right after the BOJ joined its rival in Canada in talking down the economic outlook.
Japan’s key major bank told it would hold off from any interest rate lifts for another year, thus sending the evergreen buck to another 2019 maximum of 112.38 yen.
The evergreen buck also reached a three-month maximum of $1.3509 versus the Canadian dollar on Wednesday, when Canada’s major bank cut its surge estimate for this year from 1.7% to 1.2% and also dropped language about the probable necessity for future interest rate lifts from its policy statement.
Besides this, the drumbeat of dismal economic news from elsewhere worldwide persists. The South Korean won inched down to its lowest value for more than two years versus the evergreen buck after data revealed that the country’s economy shrank by about 0.3% in the first quarter. Additionally, the Indian rupee slumped to 70 versus the evergreen buck on worries that the steep ascend in crude prices this week is going to hit its current account.
The greenback’s jump might still be tempered by disappointment from the everlasting corporate earnings season.
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 Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.