Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Greenback jumps on another round of US-China trade conflict
On Friday, the major American currency managed to jump versus its counterparts, gaining support because the latest episode of US-China trade clashes impacted investor risk appetite, while weakness in emerging market currencies also backed the US currency.
Tracking the purchasing potential of the US currency versus its primary counterparts, the USD index showed 94.748. Eventually, the index had soared nearly 0.15% overnight, concluding a four-day losing marathon.
The US currency, tending to attract safe haven bids in times of market uncertainty as well as political tensions, was backed once again because traders were set for another marathon of the US-China trade clash.
It has become known that US leader is all geared up towards driving a trade conflict with China. He told that he’s willing to slap levies on $200 billion more in China’s products as soon as a public comment period on the plan concludes next week.
The common currency has also been suppressed because of the euro zone's exposure to emerging market economies.
The common currency slumped by 0.1% coming up with an outcome of $1.1662 having lost nearly 0.3% overnight when a leap in Italian government bond profits put extra pressure on the euro.
On Thursday, Italian bond profits spiked against the backdrop of worries that tax cuts as well as welfare spending offered by the country's ruling coalition could potentially worsen its debt situation.
Furthermore, the Turkish lira headed south for its fifth day, last losing by 1.5% showing 6.7495 per dollar, creeping back toward the record minimum of 7.24 per greenback recorded on August 13.
Besides this, on Thursday, Argentina's peso was deprived about one-fifth of its value and slumped to a record minimum versus its US rival.
The Japanese yen was nearly intact keeping to 111.000.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
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.