The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
Evergreen buck struggles to rally
On Thursday, the evergreen buck gained support after data disclosed that the US economy demonstrated its strongest annual surge for 12 years. However, geopolitical worries held the US currency in check, pushing it back towards the intact mark.
Estimating the purchasing power of the American dollar versus its primary peers the USD index went down by 0.02% ending up with 96.02, rebounding from an intraday peak of 96.20.
On Thursday, the Bureau of Economic Analysis told that GDP posted a seasonally-updated annual rate of 2.6% surge for the last three months of last year, which is in line with hopes for it to dive from a rate of 3.4% in the third quarter.
Although a considerable deceleration from the explosive expansion observed in the third quarter, annual surge for the previous year still settled at a firm outcome of 3.1%, thus marking the first time since 2005 that annual surge has topped 3%.
The data managed to push the evergreen buck up, although enthusiasm started fading because fears over the fact American leader walked away from his summit with North Korean leader Kim Jong-Un with a negative outcome dominated markets.
The safe haven Swiss franc demonstrated strength versus the American dollar on the back of dismal data out of China overnight as well as remarks from US Trade Representative Robert Lighthizer who told it was too early to forecast a result in US-China trade talks. The currency pair USD/CHF declined by 0.39% being worth 0.9974.
The UK pound rebounded from a 7-month maximum versus the greenback, which was reached on Wednesday because British Prime Minister Theresa May was quite confident that a no-deal Brexit could be dodged.
The currency pair GBP/USD went down by 0.26% hitting 1.3272, rebounding from Wednesday’s intraday maximum of 1.3349.
The US CPI and core CPI are due at 15:30 MT time on May 12.
April seasonal patterns weren’t supposed to work, but somehow they did. Even a strong fundamental issue such as the global recession amid the coronavirus couldn’t overwhelm it. That’s why May seasonal patterns may work as well.
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