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Evergreen buck trims gains vs. its counterparts
On Tuesday, the evergreen buck managed to trim profits versus its opponents, suppressed by a steep ascend in the UK currency on renewed expectations for a breakthrough in Brexit negotiations.
Gauging the greenback’s purchasing potential versus its main opponents the USD index surged by 0.02% demonstrating a reading of 95.43.
A rally in the UK pound put the evergreen buck on the back foot as investors welcomed a report telling that the EU and Britain demonstrated progress in Brexit negotiations weeks before the decisive EU Summit in October.
The European bloc and the United Kingdom were probably close to coming to a compromise as to divorce terms already on Monday, although some differences on the Ireland border were still an issue, as Dow Jones Newswire informed, referring to diplomats. The United Kingdom and the European Union are reportedly doing their best to agree on an outline of a future trade pact by November.
As a matter of fact, the currency pair GBP/USD managed to head north by up to 0.3% demonstrating a reading of $1.3129 having declined to $1.3033 intraday.
Eventually the rosier backdrop for Brexit negotiations is going to be enough to keep the UK currency bid for now, as some financial analysts pointed out.
The currency pair EUR/USD slumped by about 0.12% hitting $1.1478 because lingering worries over the budget issue between the European Commission and Italy kept the common currency on the back foot.
The currency pair USD/CAD went down by 0.05% reaching C$1.2958 because soaring crude prices backed the oil-price-sensitive Canadian dollar.
The currency pair USD/JPY went down by 0.12% trading at Y113.08 because US-Japan bond yield differentials were seen narrowing, backing Japan’s currency after the 10-year US Treasury yield rebounded intraday from a fresh seven-year maximum above 3.25%.
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 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.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.