What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
Greenback is affected by cautious Clarida remarks
On Friday, the evergreen buck declined versus its counterparts due to the fact that Fed Vice Chairman Richard Clarida expressed concerns as for global surge and came up with quite dovish remarks on monetary policy.
Evaluating the evergreen buck’s purchasing power against its major rivals the USD index tacked on by 0.46% trading at 96.35.
On Friday, Clarida told that the major US financial institution is approaching a neutral rate. The given rate neither overstimulates the US economy, nor stifles surge. He also told that the world’s economy is currently decelerating.
Clarida's remarks were considered to be dovish. They sent the evergreen buck down, leading some to rumor whether the key US bank would suspend its gradual rate lifts sooner than anticipated, notwithstanding experts downplaying the remarks.
As RBC told, the market reactions to interpretations of the key US bank seem to be absolutely backwards" because there was nothing in the economic data, which could shifted the major bank’s inflation and growth outlook.
Economic data didn’t do a lot to back the evergreen buck because industrial production fell short of experts’ forecasts.
Industrial output, a gauge of output at factories, utilizes, and mines, tacked on by 0.1% in October, as the Fed uncovered on Friday. It went down below the 0.2% leap foreseen by financial analysts.
A rebound in the UK currency following its worst dive of 2018 also kept a lid on the evergreen buck because investors were relieved that no extra politicians had resigned from British Prime Minister Theresa May's cabinet because she’s ready to sell her deal to parliament and could experience another leadership challenge.
The currency pair GBP/USD surged by 0.45% being worth $1.2832. As for EUR/USD, it rallied by 0.72% trading at $1.1410.
The currency pair USD/JPY dived by 0.74% reaching Y112.81.
What will happen? US consumer confidence will be announced at 5:00 MT (GMT+3) on Tuesday, July 27…
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.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!