Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
GBP/USD is shy amid UK May’s speech and North Korea news
On Friday, having grown to 1.3590, the currency pair GBP/USD pair faced a phase of consolidation because financial markets waited for the UK PM Theresa May’s speech for further direction.
The pair GBP/USD definitely stuck below the level of 1.3600.
The spot is still on the defensive. It’s because market participants simply shift to safety amid resuming North Korean geopolitical tensions.
Furthermore, the bulls would like to stay in a wait and watch mode ahead of the UK PM May’s decisive speech due to be delivered in Florence a bit later today.
Financial markets want some clarity on the Brexit strategy because the United Kingdom and the EU are still in a deadlock as for the Brexit divorce bill.
May’s statement will probably drive market sentiment behind the GBP. Apparently, any dismal statements could potentially push Cable back towards 1.3450 levels. If financial markets look for some clarity on May’s Brexit strategy, the spot could overleap 1.3650.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Last week was super intense! Geopolitical turbulence made the Russian ruble the most volatile currency. Gold rose and fell by more than 8000 points each time.
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.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.