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 stabilizes versus yen
On Wednesday, the evergreen buck managed to stabilize versus the Japanese yen because the revenue of American Treasuries rebounded from the minimums provoked by worries over the worsening trade relations between China and the United States, although the constant worries of a trade conflict keep the greenback pressured.
By the way, yesterday the evergreen buck went down abruptly versus the Japanese yen after it became known that American leader announced his willingness to put 10% tariffs on imported China’s goods for up to $200 billion. Duties for the initial list of goods worth nearly $34 billion are going to be imposed from July 6. Responding to this move, China’s Ministry of Commerce told that it’s going to take strict countermeasures if America comes up with an extra list of duties.
The given escalation of tension generated a risk aversion as well as a sell-off in global stock markets.
The evergreen buck managed to revive having declined versus the Japanese yen because some degree of calm got back to wider financial markets. At the same time the revenue of American Treasury bonds ascended from three-week minimums.
Along with the Swiss franc and the Japanese yen, the evergreen buck also appears to be a protective asset. However, in this regard it can’t outperform the yen. Some financial analysts point out that the greenback’s status of safe haven can be questioned because for the last time it has become an extremely profitable asset.
The New Zealand dollar managed to rally a bit after the publication of New Zealand's balance of payments data for the first quarter.
In the first quarter of this year New Zealand posted a current account surplus of about NZ $ 0.18 billion. The given outcome beat hopes for a surplus of approximately NZ $ 0.05 billion following a deficit of NZ $2.77 billion for the last three months.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!