The OPEC meeting and the US Nonfarm Payrolls rocked the market last week. The market is torn between optimism about the global economic recovery and concerns about the new coronavirus strains.
Greenback dives to two-week minimum vs. yen on resuming trade tensions
On Monday, the US currency declined to a two-week minimum versus the Japanese yen because a latest flare-up in global trade worries affected investor risk appetites and suppressed American yields.
The evergreen buck tumbled by 0.4% hitting 109.54 yen having sagged to 109.45, which is its weakest outcome since June 11.
Market participants stood away from risk. Asian stocks rebounded and Treasury revenues went down after the Wall Street Journal posted that the US Treasury Department is working out rules, which would block businesses with at least 25% Chinese ownership from purchasing American companies having to do with industrially crucial technology.
According to the report, the sense of caution showed up after on Friday American leader Donald Trump threatened to put a 20% duty on all vehicles imported from the EU. In return, the European bloc responded by telling it’s going to retaliate anyway.
The USD index versus a group of six crucial currencies hit 94.559, having rebounded from 95.529, which is its highest value since July last year.
The US currency had soared to the 11-month maximum because higher American revenues had the divergence in monetary policies between the EU and America underlined.
However, the evergreen buck started sinking toward the end of the previous week because American revenues lost their lift amid resumed trade tensions between America and the EU. Additionally, the 10-year Treasury note revenue headed south to a one-week minimum of 2.871% on Monday.
The common currency was intact sticking with $1.1654 having gained approximately 0.5% on Friday. The euro was backed after Friday's positive German as well as French business activity data along with fresh assurances by Italian politicians that their nation wouldn’t break up with the euro.
As for commodity-linked currencies, they went down because a soar by crude prices ran out of steam amid another round of trade tensions.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!