Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Greenback edges down
On Monday, the evergreen buck slumped versus a currency basket, having reported its greatest weekly revenue for a month the previous week because market participants shifted their attention to American retail sales outcomes for June later in the trading session.
Estimating the evergreen buck’s purchasing potential against a group of six main rivals, the USD index declined 0.15% being worth 94.30. The previous week the index ascended 0.7%, which is its largest weekly percentage leap since mid-June.
Demand for the evergreen buck was still backed because the risk of an intensifying escalation in trade conflict as well as soft economic data out of China irritated traders.
Overnight, data disclosed that China’s economy speeded down, which is in line with hopes in the second quarter, showing that the trade conflict with America might be acting as a drag on surge.
As a matter of fact, Chinese GDP managed to leap at an annual rate of 6.7% for the three months to June, tumbling from 6.8% in the first quarter.
Additionally, on Monday, China told that it had filed a complaint with the WTO over an American threat to impose 10% duties on $200 billion of China’s imports.
The move showed up after over the weekend Donald Trump alarmed European leaders by telling that the European block appears to be an enemy considering how it trades with America.
The common currency ascended to the day’s maximums versus the softer greenback. The currency pair EUR/USD soared 0.2% hitting 1.1709.
The evergreen buck was nearly intact versus the safe haven yen. The currency pair USD/JPY reached 112.38.
Market participants were waiting for June retail sales figures from America in the day.
Aside from that the International Monetary Fund was expected to come up with its fresh World Economic Outlook a bit later on Monday.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
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.