What will happen? US consumer confidence will be announced at 5:00 MT (GMT+3) on Tuesday, July 27…
Evergreen buck stands still as yen bounces off
On Monday, the evergreen buck stood still, while the safe haven Japanese yen rallied, after a suddenly steep dive in China’s exports spurred fears over the health of the world’s economy.
A traditional gauge of the actual purchasing power of the major American currency versus a number of its primary peers the USD index slumped by 0.07% being worth 95.20. The currency pair USD/JPY tumbled by 0.26% trading at 108.24.
In December, Chinese exports headed south by the most for two years, while imports inched down too. The numbers ramped up worry that fresh American duties on Chinese experts are affecting the Chinese economy. Moreover, data also revealed that China had its biggest-ever trade surplus with America in 2018 that could affect everlasting trade talks with the US government.
For recent weeks the evergreen buck has slumped due to the fact market participants actually expect the US major financial institution to have its rate of monetary tightening paused. Last week Fed Chair Jerome Powell repeated that the Fed is capable of being patient on monetary policy considering that inflation is still steady.
Furthermore, the UK pound revived a bit after the news that Theresa May has supposedly urged her party to back an amendment with a December 2021 deadline to the backstop pact.
The currency pair GBP/USD soared by 0.15% trading at 1.2859.
The common currency was nearly intact. The currency pair EUR/USD hit 1.1463.
The currency pair AUD/USD slumped by 0.2% hitting 0.7199, while NZD/USD headed south by 0.1% reaching 0.6822.
Both currencies had managed to leap by up to 1.5% against the evergreen buck the previous week because risk sentiment improved on expectations for both a US-China trade agreement and more hawkish stimulus from Chinese policymakers to back its ailing economy.
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.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
This week Apple, Microsoft, Google, Facebook, Pfizer, and other large US companies will deliver earnings reports…
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…