USD/CHF and EUR/CHF rose to tactical highs. What's next?
Greenback hits 8-week maximum vs. yen as investors wait for Fed signal
On Monday, the evergreen buck hit an eight-week maximum against the Japanese yen, backed by a soar in American Treasury yields because market participants eyed a Fed gathering starting the next day for further clues on whether interest rates could leap again by year-end.
The US currency recorded its best trading week versus the Japanese yen since November the previous week, earning 2.8% because a leap in American yields increased its appeal and data demonstrating a pick-up in American consumer prices helped to power expectations that the Fed could lift rates again in December.
Apparently, it built on those revenues on Monday because world stocks showed record maximums, hinting at a high appetite across financial markets for riskier assets, soaring 0.5% on the day to 111.41 yen. It turned to be the greenback’s strongest outcome since July 27.
The common currency slumped 0.1% reaching $1.1924, staying below a 2-1/2 year maximum of $1.2092 hit earlier this month.
Eurozone, France, and Germany will publish the flash services and manufacturing PMIs on February 19, from 10:15 to 11:00 MT time
Australia will publish the employment change and unemployment rate on February 18, at 02:30 MT time.
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.