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Evergreen buck trades sideways
On Tuesday, the evergreen buck was trading sideways, having slumped on Monday following remarks from the Fed’s Charles Evans suggesting that there won’t be any change in interest rates for more than a year.
Evans told that he’d be quite comfortable with interest rates frozen where they’re until the fall of 2020, the outcome he thought would assist to ensure that inflation gets back to the Fed’s objective of 2% having dived for the last time.
The major US bank’s adoption of a looser policy stance hasn’t managed to provoke any considerable weakening of the evergreen buck because many other major financial institutions have followed it in giving up any plans for higher interest rates.
Overnight, Australia’s key bank had become the latest central financial institution to cling to an easier monetary policy. As follows from the minutes of the RBA’s recent policy meeting, if inflation didn’t soar from its current levels, and also if joblessness started to jump, then a tumble in the cash rate would probably be appropriate.
Following the news, the greenback went up by about 0.4% versus the Australian dollar.
Estimating the evergreen buck’s purchasing potential versus its main rivals the USD index stood still with a reading of 96.555.
Meanwhile, the common currency stood still, sticking with $1.1307. As for the UK currency, it dived a bit to $1.3090. Besides this, the Turkish lira was still pressured having reached a six-month minimum versus the evergreen buck on Monday.
The RBA’s move followed similar ones by the BoE, BOJ, ECB, and also the Reserve Bank of New Zealand for the last time.
Aside from that, the German ZEW confidence index is going to be uncovered at 05:00 AM ET, while the British March labor market data will be revealed at 04:30 AM.
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.