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 soars on stronger-than-anticipated GDP
On Monday, the evergreen buck surged a bit and hovered near a two-month peak on a stronger-than-anticipated third-quarter GDP report.
Estimating the purchasing power of the evergreen buck against a pack of its primary counterparts the USD index added 0.08% being worth 96.24.
As the Commerce Department informed on Friday, the American economy surged at a 3.5% annualized rate, thus surpassing hopes for 3.3%.
Additionally, trade clashes between China and America as well as rate policies by the key US financial institution were cited as tailwind for the evergreen buck for recent months commonly considered to be a safe-haven asset in hard times.
In addition to this, the Chinese Yuan lost versus the US counterpart. The currency pair USD/CNY pair managed to rally by 0.1% showing 6.9544. China’s key bank had CNY 120 billion drained from the market as on Monday it was caught skipping open market operations. The PBOC had the Yuan midpoint rate raided by up to 133 pips bringing it to 6.9377 in contrast with Friday's reading of 6.9510.
Besides this, central bank meetings in Japan and Britain are anticipated to be closely watched. They are broadly considered to stay intact on their current policy stance.
Citing a poll, Bloomberg informed that experts are assured that the Bank of Japan’s inflation estimates are going to be mostly intact, and they also don’t expect Japan’s key financial institution to take extra action to back the national economy when the sales tax is ramped up next year.
The vast majority of financial experts guess the bank’s first tightening measure would be a lift of the 10-year yield rate.
Additionally, the currency pairs AUD/USD and NZD/USD both rallied by 0.1%.
As for the Japanese yen, which is another safe-haven asset, it was nearly intact on Monday. The currency pair USD/JPY added 0.01% hitting 111.92.
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