The South African Finance Minister is delivering a budget speech today. There may be a strong impact on ZAR, so what's going to happen?
Greenback goes down
On Monday, the evergreen buck generally dived, with the common currency and the UK pound gaining ground because fears over Italy’s budget clash relieved, although market participants were still cautious due to the fact that a host of geopolitical risks kept looming over financial markets.
Assessing the purchasing potential of the key US currency versus its primary rivals the USD index declined by 0.27% hitting 96.56, rebounding from a one-week maximum of 96.96 hit overnight.
The evergreen buck was backed overnight due to the fact worries of a deceleration in global economic surge as well as fears over the US-China trade conflict impacted risk appetite.
The common currency managed to surge versus the evergreen buck. The currency pair EUR/USD added about 0.41% trading at 1.1382.
The common currency was backed by indications of a breakthrough in the long lasting clash between Rome and the European bloc over Italy’s 2019 problematic budget right after Deputy Prime Minister Matteo Salvini stressed that his cabinet could have its borrowing targets lowered.
The European bloc has disapproved Italy’s 2019 draft budget because of the country’s intention to run a 2.4% deficit that is a pure violation of EU fiscal regulations.
The UK pound rallied too. The currency pair GBP/USD soared by 0.22% hitting 1.2841, although profits were held in check against the backdrop of everlasting uncertainty over Brexit.
On Sunday, European leaders officially approved the terms of Britain’s withdrawal from the trading bloc, although experts are currently focused on whether the Brexit pact will pass a vote in the UK legislative body.
The UK pound dived a bit versus the common currency. The currency pair EUR/GBP surged by about 0.18% trading at 0.8862.
The evergreen buck rallied versus Japan’s currency. The currency pair USD/JPY gained up to 0.25% being worth 113.24.
Let’s consider the best and the worst-performing assets as Monday’s session kicks in.
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