Reserve Bank of New Zealand (RBNZ) will reveal Official Cash Rate and make a statement about monetary policy on October 6, 04:00 GMT+3.
Greenback inches up on expectations for US-China trade negotiations
On Monday, the evergreen buck rallied versus a group of currencies, underpinned by hopes for trade negotiations that traders expect to relieve tensions between China and America.
Estimating the purchasing power of the US currency against its key rivals, the USD index rallied by 0.1% hitting 96.11 having dived by approximately 0.5% on Friday, which is the greatest losing day in nearly a month.
Escalating tensions between America and its trading partners, combined with a currency meltdown in Turkey brought the evergreen buck to 14-month maximums the previous week.
The greenback’s surge stalled ahead of expected trade negotiations between American and Chinese officials in the US capital in the coming days. Receding worries over the fallout from the Turkish currency’s recent selloff also relieved risk aversion, thus affecting US dollar demand.
On Monday, market sentiment toward Turkey managed to stabilize, with Turkey’s currency standing still sticking with the 6 lira to the greenback level. By the way, Turkish financial markets were unavailable due to holidays for the week.
The common currency went down versus the firmer greenback. The currency pair EUR/USD slumped by nearly 0.18% hitting 1.1416, which still appears to be above last Wednesday’s 13-month sink of 1.1300.
The evergreen buck rallied versus the Japanese yen. The currency pair USD/JPY added by up to 0.13% hitting 110.64 having slumped by 0.36% on Friday.
In addition to this, market participants were looking ahead to Wednesday’s minutes of the key US bank’s August gathering, when it left interest rates on hold and stressed that it’s still on track for extra rate lifts in 2018.
Market participants are going to be on the lookout for any changes in the Federal Reserve’s outlook on inflation as well as the trade war and economy worries.
United States Institute for Supply Management (ISM) will release services Purchasing Managers' Index (PMI) on October 5, 17:00 GMT+3.
Although Jerome Powell’s speech sounded hawkish on Wednesday, September 22, markets did not get scared and the main stock indices got bought back…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).