Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Greenback keeps to session minimums
On Wednesday, the evergreen buck was still near session minimums versus its counterparts on reports that China and America would resume trade talks, while weaker American wholesale inflation also put pressure.
Tracking the greenback’s purchasing potential versus its primary counterparts the USD index went down by 0.24% being worth 94.82, staying close to session minimums of 94.72.
US Treasury Secretary Steven Mnuchin sent a letter to the Chinese government to propose trade negotiations in the next few weeks, as the Wall Street Journal informed.
The negotiations would take place before the Trump administration slaps extra levies on China’s goods, as follows from the report.
The news provoked a brief rebound in the evergreen buck because market participants tamed their bets on a full-fledged US-China trade conflict that had backed demand for the US currency on hopes that America would fare better than its counterparts.
On Wednesday, the Labor Department informed that its producer price index for final demand headed south by 0.1% in August, thus missing experts’ estimates for a 0.2% ascend. The producer price index jumped by 2.8% in the 12 months through August.
The evergreen buck was also affected by a firmer Canadian dollar in the face of soaring crude prices and also on optimism that Canada and America will come to a compromise on a revamp of the North American Free Trade Agreement.
The currency pair USD/CAD edged down by 0.58% trading at $1.2993.
The UK currency and euro were generally intact versus the evergreen buck because both the ECB and Bank of England are anticipated to stand pat on interest rates on Thursday.
The currency pair GBP/USD edged up by 0.02% hitting $1.3036. As for EUR/USD, this pair added 0.19% trading at $1.1628.
Additionally, the risk-sensitive currency pair USD/JPY slumped by 0.27% being worth Y111.34.
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.