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.
Greenback is at 11-month peak
On Thursday, the evergreen buck kept to an 11-month maximum versus the group of major currencies. The US currency was underpinned by the surge of American Treasury revenue, while the UK pound was struggling to overcome the lowest value since November 2017 before the BoE’s monetary policy verdict.
The USD index versus a bunch of six main counterparts amounted to 95.11, having soared to 95.299 yesterday, which appears to be the highest outcome since mid-July 2017.
Backing the greenback, the Treasury's long-term revenue rebounded from the three-week minimum on Wednesday because the risk aversion that strengthened earlier this week in the face of trade tensions between China and the United States receded.
Treasury profits were also backed by remarks by Fed Chair Jerome Powell, who told that the key US financial institution should keep gradually lifting interest rates.
The British pound managed to get away from the seven-month minimum after UK Prime Minister Theresa May had a decisive parliamentary vote on Brexit won, thus averting an uprising, which could potentially undermine her credibility.
However, the rebound of the UK currency happened to be quite limited on the eve of the gathering of the Bank of England a bit later today. Financial experts expect the Bank of England to keep the interest rate intact, and the statement of the major financial institution of Great Britain won’t bring surprises.
Meanwhile, the New Zealand dollar kept going down, sagging below the monthly low that to some extent managed to contribute to the data on New Zealand's GDP for this year’s first quarter.
New Zealand’s GDP for the first three months of this year tacked on by 0.5%. The given outcome appeared to be in line with hopes, although it was lower than the previous reading of about 0.6%.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!