Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Greenback is poised for weekly drops after Fed disappoints bulls
On Friday, the evergreen buck licked its wounds in Asia trade, wallowing at five-week minimums against a currency basket and staying on track for weekly losses after the Fed signaled fewer interest rate lifts than some market participants had expected.
In spite of the fact, on Wednesday, the major US bank delivered an interest rate lift as broadly anticipated, it didn’t alter its earlier forecast for a total of three rate lifts in 2017.
It disappointed greenback bulls who had hoped for hints of a probable fourth lift in 2017.
The dollar index, gauging the greenback against a basket of six crucial counterparts, slid 0.1% to 100.26, having tumbled to 100.21 overnight, its lowest outcome since February 9. For the week it lost 1%.
Against the Japanese yen, the greenback slid 0.1%, hitting 113.44, descending 1.2% for the week ahead of Monday’s Tokyo public holiday.
The Japanese yen gained notwithstanding steeply diverging monetary policy expectations.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Last week was super intense! Geopolitical turbulence made the Russian ruble the most volatile currency. Gold rose and fell by more than 8000 points each time.
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.