Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Greenback extends early revenues
On Tuesday, the evergreen buck managed to extend early revenues versus a currency basket, thus sending the common currency down, while mixed GDP data along with and political instability put pressure on the UK pound.
Gauging the greenback’s strength versus a group of six key currencies, the USD index rallied by 0.25% being worth 94.04.
The common currency slumped versus the US currency. The currency pair EUR/USD dipped 0.27% to 1.1719 having dived to 1.1691 earlier.
Meanwhile, in the euro zone, Tuesday’s data disclosed that German investor confidence headed south to the lowest value for six years in July due to the fact worries as for another escalation in trade tensions with America affected the economic outlook.
In July, the ZEW index of German investor sentiment inched down to -24.7 versus June’s outcome of -16.1, which is the weakest value since August 2012.
The evergreen buck managed to soar versus the Japanese yen. The currency pair USD/JPY tacked on by 0.33% trading at 111.19, which is the most impressive outcome since May 21.
Demand for the evergreen buck was still backed by hopes for a faster tempo of rate lifts by the key US financial institution in 2018.
The currency pair GBP/USD gained 0.11% being worth 1.3273.
Meanwhile, in May, UK economic surge speeded up to 0.3% from April’s reading of 0.2%.
The report offered rather a mixed picture of the British economy, with mild surge powered by the services sector, partly compensated by sagging construction as well as industrial output.
Some financial analysts are assured that the data will keep Britain’s major bank on track for an August interest rate lift, but others are afraid that political instability might give policymakers grounds to hold off.
The UK pound managed to gain ground versus the softer common currency. The currency pair EUR/GBP dived 0.44% reaching 0.8823.
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 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.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.