Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Greenback keeps leaping on Fed rate lift
On Thursday, the evergreen buck jumped because the Federal Reserve had interest rates raised, exactly as anticipated.
Estimating the evergreen buck’s purchasing power versus its primary counterparts the USD index went up by 0.59% being worth 94.43.
On Wednesday, the key US bank had interest rates lifted by a quarter point to 2.25% on. That’s the bank’s third rate lift in 2018 and also the eighth since 2015.
While the rate lift didn’t appear to be a surprise, but it helped to spur the US currency because the key financial institution showed it expected to lift rates for a fourth time in December. What’s more, the key bank is willing to come up with three lifts next year and also in 2020.
The major financial institution didn’t utilize the word "accommodative" when illustrate its monetary policy stance, stressing that the change doesn’t show any change in its path toward improving its monetary policy.
Besides this, the evergreen buck rallied versus the safe-haven yen. The currency pair USD/JPY ascended by 0.50% trading at 113.28.
The common currency headed south to its one-week minimum in the face of worries that Italy’s fresh government would have to postpone a budget meeting scheduled for later in the day, reacting to reports of a row ahead of an emerging deadline to present the budget.
Market participants are also afraid that the government will consider increasing next year’s budget deficit that could make Italy conflict with the European Commission as well as traders who would like to see a deficit cut.
The currency pair EUR/USD reached 1.1669 having dived to 1.1685 previously, which is the lowest value since September 20.
The UK currency slumped because traders were still skeptical of Brexit talks the EU and Britain. The currency pair GBP/USD slumped by 0.46% hitting 1.3104.
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.
A new week means new trading opportunities! Here are some events that can fluctuate the market actively…
The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
The United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on August 5, 15:30 GMT+3.