Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Greenback declines on Trump’s remarks on Fed
On Friday, the evergreen buck slumped after Donald Trump had the Federal Reserve heavily criticized for lifting interest rates, although it was still on target for a second winning week.
Estimating the greenback’s value versus a bunch of key currencies, the USD index slumped by 0.15% being worth 94.84.
Notwithstanding the sag, the evergreen buck happened to be on target for a second winning week, and it has soared over 5% for the last three months on hopes that interest rates are going to ascend.
Trump told that he doesn’t like how the main American financial institution is pursuing its monetary policy now. The Federal Reserve had rates raised twice in 2018, and it’s expected to have them lifted one more time before the end of 2018.
US leader told that he wasn’t thrilled about it at all. He told that the major US bank is used to raising rates each time the American economy goes up. However, this approach makes US products less competitive. Nevertheless, Trumps allows the Fed to do what the bank is believed to be good at.
At the same time, trade tensions resumed, with the EU anticipated to strike back against America with more duties after the United States slapped duties on aluminum and steel in June. Duties on $3.8 billion of American products have already been slapped by the European bloc.
The greenback dived versus the safe-haven Japanese yen. The currency pair USD/JPY dipped by 0.06% trading at 112.39. In times of uncertainty, market participants tend to purchase Japan’s currency because it’s considered to be a safe-haven asset, which would come in handy when facing hard times.
The UK currency managed to rally. The currency pair GBP/USD gained 0.08% being worth 1.3024. The currency pair EUR/USD added 0.11% trading at 1.1656.
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.