Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.
Greenback rebounds as world equity markets demonstrate stability
On Tuesday, the evergreen buck rebounded due to the fact global equity markets demonstrated evident signs of stability following their recent rout, recovering risk appetite, which has drove bets versus the American dollar on prospects of its shrinking interest rate of advantage.
However, a great number of market participants aren’t assured yet that the worst’s over, especially considering American bond revenues stuck at elevated values prior to Wednesday's American consumer price data, which could have concerns rekindled regarding inflation.
Some market analysts think that financial markets are going to stay shaky at least until highly anticipated Powell’s congressional testimony to be held on February 28.
The US dollar's index versus a basket of six crucial currencies kept to 90.1392, after diving 0.26% on Monday, while also rebounding from Thursday's half-month maximum of 90.569.
The common currency hit $1.2290, rebounding from the previous week's minimum of $1.2206.
Purchasing the common currency was one of the popular transactions earlier in 2018, driven by the opinion that the ECB considers scaling back its stimulus later in 2018 on the back of a firm revival in the euro zone economy.
However, in the long term a lot of investors are still bullish on the common currency, as the euro definitely lacks fresh catalysts for new revenues in the face of headwinds from uncertainty prior to Italy's election scheduled on March.
In Germany, the leader of the Social Democrats along with current Chancellor Angela Merkel are taking criticism from their own parties as for a fresh coalition deal, which needs to be passed by angry SPD rank-and-file members.
As for the risk reversal spreads for common currency/greenback options, they have extended in favor of the euro puts, thus dropping a hint that market participants have become more cautious as for the likelihood the euro will go down.
The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.
The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
Good morning, dear traders! Hope you’re doing great! Let’s talk about the news that is worth following today! Key market events: 15:30 MT, CAD GDP m/m 17:00 MT, GBP BOE Gov Bailey Speaks Oil is tensed again Oil rose as China refined its approach…
Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Hello, dear traders! We hope you have a great day! Let’s see what news is worth following today! Market closing US stock exchanges will be closed due to the Thanksgiving holiday…