The South African Finance Minister is delivering a budget speech today. There may be a strong impact on ZAR, so what's going to happen?
Evergreen buck slumps
On Thursday, the evergreen buck declined versus its main rivals because a cautiously optimistic mood in financial markets affected safe haven demand. The common currency rallied against the backdrop of expectations for a resolution to the conflict over Italy’s budget.
Evaluating the greenback’s purchasing potential against its major rivals the USD index dived to an overnight minimum of 96.44.
On Wednesday, the evergreen buck had dived a bit after reports that the Fed could pause its rate lift cycle next spring. The key US financial institution is anticipated to have rates lifted for a fourth time in 2018. The vast majority of financial analysts are assured that it will occur at its December gathering.
In addition to this, EU markets started a bit lower. As for Asian equities, they held up overnight after Wall Street’s rebound from abrupt losses earlier in the week. On Thursday, American financial markets were to be unavailable for the Thanksgiving holiday.
In general, market sentiment was still fragile against the backdrop of soaring worries over a deceleration in the world’s economy as well as the everlasting trade conflict between China and the United States.
As a matter of fact, the evergreen buck dived versus the Japanese yen. The currency pair USD/JPY hit 112.96.
Besides this, the common currency managed to head north. The currency pair EUR/USD surged by up to 0.16% ending up with a reading of 1.1402 in the face of expectations that the row between Italy’s government as well as the European Union over Rome’s budget for next year, which violates the euro zone fiscal regulations, can be successfully tackled.
Besides this, the UK currency rallied versus the greenback. The currency pair GBP/USD hit 1.2788. As for EUR/GBP, this currency pair tacked on by up to 0.11% trading at 0.8918.
Let’s consider the best and the worst-performing assets as Monday’s session kicks in.
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