What will happen? US consumer confidence will be announced at 5:00 MT (GMT+3) on Tuesday, July 27…
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.
The OPEC meeting and the US Nonfarm Payrolls rocked the market last week. The market is torn between optimism about the global economic recovery and concerns about the new coronavirus strains.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!