The United States will release the advance GDP growth rate for the previous quarter on July 30, at 15:30 MT time.
Greenback jumps on soaring Treasury yields
On Friday, the evergreen buck rallied to a 10-day maximum after American consumer prices data disclosed a build-up of inflation pressure, which would enable the Federal Reserve to have rates lifted up to four times in 2018.
Estimating the US currency’s purchasing power against its six key rivals, the USD index managed to tack on by up to 0.13% being worth 94.69.
It’s evident that this week the evergreen buck derived benefits from the trade clash worries that showed up earlier. It definitely backed the currency, as a safe-haven asset.
The American economy has demonstrated that it’s in a good shape and Treasury revenues have tacked on. Needless to say, these crucial factors have greatly underpinned the evergreen buck.
On Wednesday, a trade clash between America and China intensified because the US government uncovered its firm intention to impose 10% duties on $200 billion worth of China’s products.
The tit-for-tat duties have powered concerns that the world’s two leading economies could spark a fierce trade conflict that market participants fear could affect global surge.
As a matter of fact, the currency pair USD/JPY managed to inch up by 0.12% being worth 112.65. This week the major American currency has soared approximately 2% versus the Japanese yen, normally purchased as a safe haven in times of market turmoil and political tension.
At the same time, the currency pair AUD/USD ascended about 0.07% being worth $0.7413 because Friday’s data disclosed that China's dollar-denominated exports soared a higher-than-anticipated 11.3% in June from 2017.
Besides this, the UK currency headed south to a one-week minimum because American leader Donald Trump warned British Prime Minister Theresa May that this soft Brexit proposal of hers could have an adverse impact on the trade deal with the United States of America.
The US unemployment claims are announced on Thursday at 15:30 MT time.
The Australian Monetary Policy Meeting Minutes are announced on Tuesday at 04:30 MT time.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…