The OPEC meeting and the US Nonfarm Payrolls rocked the market last week. The market is torn between optimism about the global economic recovery and concerns about the new coronavirus strains.
Greenback reaches 1-month maximum
On Thursday, the evergreen buck jumped to a more than one-month maximum versus its counterparts, neglecting mostly bearish American economic data as a dive in the UK pound backed market sentiment.
Assessing the greenback’s purchasing potential versus its primary rivals the USD index rallied by 0.32% being worth 96.49.
The US currency was still on track notching its second weekly surge, even as data disclosed weakness in the labor market as well as indications of slowing momentum in business spending prior to the crucial third-quarter American GDP data to be uncovered on Friday.
On Wednesday, the Commerce Department told that core durable products orders surged by 0.1% in September, confounding market experts’ estimate for a 0.5% jump.
While the trends for orders are still upbeat, the signs about business spending were moderate in the report due to the fact capital products orders went down for the second month in a row.
On Thursday, the US Department of Labor informed that initial jobless claims soared by 5,000 reaching a seasonally updated 215,000 for the week by October 20, which is higher than experts’ forecast for a leap to 214,000.
The soft patch for American housing activity declined after the National Association of Realtors’ pending home sales index managed to surge by 0.5% hitting 104.6 in September.
The mostly dismal economic data failed to do a lot to keep a lid on the evergreen buck’s rally following weakness in both the common currency and pound.
The currency pair GBP/USD headed south by 0.5% being worth 1.2818 due to the fact the currency pair struggled to hold early-session profits that had followed news that British Prime Minister Theresa had been asked by members of her Conservative party to have a rest, at least temporarily, and it happens to be a real challenge to her leadership.
EUR/USD sank by 0.30% hitting $1.1358.
USD/JPY ascended by 0.33% showing Y113.62.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!