The United States will publish the ISM Manufacturing PMI on September 1, at 17:00 MT time (GMT+3).
Greenback ascends on Powell’s assessment of American economy
On Wednesday, the evergreen buck managed to jump because Fed Chair Jerome Powell came up with an upbeat assessment of the American economy at his Tuesday’s semi-annual congressional testimony.
The statesman stressed that the US key financial institution is on the verge of gradually increasing its interest rates.
Gauging the purchasing power of the major American currency versus a group of its crucial counterparts, the USD index gained 0.13% trading at 95.05.
The evergreen buck reached a six-month maximum versus the Japanese yen. The currency pair USD/JPY went up by 0.1% demonstrating 112.97 having ascended to 113.08 previously - its strongest value since January 9, underpinned by Powell’s positive remarks.
The evergreen buck is expected to keep ascending, especially versus Japan’s currency, with risk aversion in the equity markets fading away, as some financial analysts pointed out.
While long-term Treasury revenues aren’t soaring powerfully, it’s a pure reflection of investor demand for American assets, which generates a degree of dollar-buying in the market.
Aside from that Powell told that at his testimony that protectionism is capable of hindering economic surge. He told that those countries, which have remained open to trade, and which haven’t come up with barriers including duties, have ascended quicker. Respectively, these countries boast higher incomes as well as higher productivity.
Moreover, trade worries can have a strong impact on salaries as well as capital expenditures, as Powell pointed out.
In addition to this, the currency pair AUD/USD managed to decline 0.14% demonstrating an outcome of $0.7381, thus extending its rebound from Tuesday when this currency pair lost approximately 0.45% versus a broadly stronger major American currency.
As for Japan’s currency, it was nearly intact versus the evergreen buck. Meanwhile, on Wednesday, the currency pair USD/CNY headed south by nearly 0.02% trading at 6.7065.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
What will happen? US consumer confidence will be announced at 5:00 MT (GMT+3) on Tuesday, July 27…
Quadruple witching is gone and now there are no reasons for the market to hinder. From banks statements and economic data to gas storage reading and Fed’s Powell speech – get ready for active trading.
The US showed strong retail sales for August despite the spread of the Delta virus strain. As a result, the US dollar rocketed and gold dropped by 2286 points in half an hour after the release.
The United States will release MoM Retail Sales data on September 16, 15:30 GMT+3.