The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
Evergreen buck stands still in holiday-thin trade
On Wednesday, the evergreen buck stood still in holiday-thinned trade because another round of positive earnings kept pushing traders towards equities as well as other riskier assets.
Assessing the greenback’s purchasing potential versus its major counterparts the USD index stood still, sticking with 96.662.
Trading is anticipated to be thin for the rest of the trading week because American markets will be unavailable on Friday for the Easter holiday.
Previously, China’s data had helped to raise the evergreen buck because the Asian country’s gross domestic product managed to head north by about 6.4% in the first quarter from 2018, dropping a hint that the Chinese economy isn’t decelerating like initially anticipated.
In addition to this, the Chinese Yuan tacked on. The currency pair USD/CNY headed south by about 0.3% trading at $6.6884.
The evergreen buck was nearly intact versus the safe-haven Japanese yen. Eventually, the currency pair USD/JPY decreased by about 0.01% coming up with a reading of 111.97.
As for the UK pound, it slumped due to the fact that the British legislative body is on recess and no progress on Brexit can be achieved before next week. The currency pair GBP/USD decreased by about 0.05% trading at 1.3039.
Aside from that, USD/CAD inched down by 0.2% reaching 1.3329 after a surprise rally in core inflation suggested the Canadian economy could be tighter than the country’s major bank anticipated.
The currency pair EUR/USD rallied by 0.2% showing 1.1294 right after European Central Bank governing council member Ewald Nowotny told that the ECB won’t probably cut its June estimate because it waits for the euro zone economy to finally stabilize in the second half of 2019.
The United States will release retail sales and producer inflation (PPI index) numbers at 15:30 MT time on June 15.
Gold has plunged amid the stronger US dollar as investors await the Fed’s meeting this week.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?