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.
Evergreen buck tacks on vs. yen thanks to upbeat American economic data
On Wednesday, the evergreen buck managed to tack on versus the Japanese yen. It took place due to quite good US economic data. Meanwhile, worries over the trade relations between Washington and Beijing seem to have receded and currently they turn to be less significant.
The US dollar index to the group of leading currencies was trading without steep fluctuations, showing an outcome of about 89.534 having soared 0.1% the day before.
At the previous session, the US dollar index headed south to the value of 89.229, which is the lowest value since March 27. However, after this it recovered due to the forecasts for construction of houses as well as industrial production of the United States, which managed to surpass forecasts in March.
The major US currency managed to acquire 0.4% ending up with a result of 107.37 yen following a sag to 106.885 on Tuesday. Recovery of appetite for risk provoked a weakening of demand for safe Japanese national currency.
The common currency was trading without steep fluctuations. It demonstrated a reading of $1,2373.
The single European currency reached a three-week maximum of $ 1.2414 on Tuesday, although after this it dived to $1.2336 after the ZEW research institute reported that economic sentiment in Germany in April reached its lowest level since November 2012.
The UK pound was trading without a distinct dynamics ending up with $1.4295, drifting away from the high of 22 months at $1.4377, reached on Tuesday, when data indicated that the growth of wages in the United Kingdom was not reaching forecasts.
The Australian dollar dived 0.1% hitting $0.7765, proceeding with the decline triggered by weak economic data released on Tuesday.
As for the New Zealand dollar, this commodity currency slid 0.1% to $0.7335.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
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…
PMI reports from the EU, the UK, and the USA will be released during the day!