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, although still pressured by Fed minutes
On Thursday, the evergreen buck shot up a bit after dovish minutes from the US major bank in the previous trading marathon provoked an abrupt dive in the US currency.
Monitoring the evergreen buck’s purchasing power against its primary peers the USD index strengthened by 0.20% ending up with 94.97.
Minutes from the Federal Reserve’s December gathering revealed that a lot of policymakers want rates to stand still in 2019, backing hopes that there will be no interest lifts this year. Eventually, the dovish tone drove the greenback down to a nearly three-month minimum of 94.63.
As some financial analysts pointed out, the evergreen buck has completely run out of things to make it keep soaring.
They added that the key US financial institution has informed them that they're at or near a point where the major bank intends to cease interest rate lifts. Experts actually foresee the boost they saw to the American economic surge in 2018 will undoubtedly fade away.
In addition to this, market participants are also closely watching remarks from Fed Chair Jerome Powell. The given statesman is expected to deliver a speech at 12:45 PM ET at the Economic Club of Washington.
The common currency declined because of the soaring evergreen buck. As a matter of fact, the currency pair EUR/USD decreased by 0.17% being worth 1.1522. As for the UK pound, it was strained too due to the fact that Brexit woes keep dampening investor sentiment. Eventually, the currency pair GBP/USD went down by 0.3% being worth 1.2750.
The Canadian dollar decreased having slumped to a maximum of 1.3247 on Wednesday because the Bank of Canada kept rates on hold. The currency pair USD/CAD shot up by 0.26% trading at 1.3241.
Additionally, the Australian dollar ascended. The currency pair AUD/USD went up by about 0.15% hitting 0.7181.
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.