ECB meeting is on the agenda. Will the EUR get weaker?
Greenback dives ahead of Fed testimony
On Tuesday, the evergreen buck declined ahead of congressional testimony by Fed Chair Jerome Powell that market participants are going to scrutinize for signs on the tempo of American interest rate lifts as well as risks coming from trade clashes.
On Tuesday, Powell is on the verge of testifying on the American economy as well as monetary policy before the US Senate Banking Committee.
The statesman is anticipated to deliver a positive message on the outlook for surge and reaffirm the key US bank’s gradual monetary tightening policy. However, Powell is expected to be bombarded with hard questions as for the Fed’s independence and how the major bank would deal with the intensifying global trade conflict.
Financial experts at Societe Generale are assured that the worsening trade clash is getting a realistic threat, which could put pressure on market sentiment as well as capital spending.
The evergreen buck slumped 0.2% versus a group of six key currencies, offsetting small leaps recorded during the morning trading session.
The evergreen buck stood still versus the Japanese yen, showing 112.27 yen, having approached a six-month maximum of 112.80 yen.
The evergreen buck’s revenues have been capped this year by fears over the intensifying trade clash between China and America, although the worries haven’t ruined the US dollar’s firm performance so far.
On Monday, the International Monetary Fund had warned that worsening and sustained trade clashes following American tariff action might confound economic recovery and also depress medium-term surge prospects.
The common currency and the British pound added a bit versus the evergreen buck. The euro managed to leap up to 0.2% coming up with an outcome of $1.1738 having weakened 0.5% the previous. Meanwhile, the UK currency rallied 0.1% being worth $1.3255.
As for the Australian dollar, it ascended 0.1% trading at $0.7428.
The news that opposition lawmakers plan to stop Boris Johnson to leave the European Union without a deal increased the political uncertainties in the UK.
The level of non-farm payrolls (NFP), also known as non-farm employment change will be published on September 6, at 15:30 MT time.
Pay attention to the FOMC meeting, where the rate cut is expected. Also, it is recommended to keep an eye on the oil prices, updates on trade talks between the USD and China and, of course, Brexit.
The retail sales for the US in focus today
During today's Turkish central bank meeting, the market anticipated a rate cut between 200-300 pips.