Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Evergreen buck tacks on
On Thursday, the major American currency managed to gain ground versus a pack of its rivals, while the Russian rouble slumped on sanctions worries and the New Zealand dollar reached a two year minimum on a dovish stance of the country’s major bank.
Estimating the purchasing potential of the greenback against a number of its main counterparts the USD index tacked on by up to 0.13% hitting 95.08.
The evergreen buck was nearly intact versus the Japanese yen. Eventually, the currency pair USD/JPY demonstrated 111.02 having dived to about 110.71 overnight ahead of the highly anticipated bilateral trade negotiations between Japan and America in Washington.
The common currency managed to edge down versus the evergreen buck. The currency pair EUR/USD slipped by nearly 0.19% trading at 1.1588.
The euro also declined against Japan’s currency. The currency pair EUR/JPY dipped to 128.76.
The UK currency was struggling near one-year minimum versus the common currency and the evergreen buck. The currency pair GBP/USD showed 1.2857, while EUR/GBP hit 0.9011 against the backdrop of soaring worries as for the prospect of the United Kingdom to leave the European bloc even without a trade deal in place.
Besides this, the New Zealand dollar steeply sank. The currency pair NZD/USD dipped by 1.16% being worth 0.6656, which is its weakest value since mid-March 2016.
The dip in the New Zealand dollar occurred after the Reserve Bank of this country told that it’s not going to change its interest rates for two years. However, the bank stressed that rates can be lowered if required.
As for the Australian dollar, it stood still. The currency pair AUD/USD demonstrated an outcome of 0.7424.
Furthermore, China’s Yuan went down versus the evergreen buck. Traditionally controlled by the government, in offshore trade China’s currency hit 6.8287.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.