Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Greenback rebounds from this year’s maximum
On Wednesday, the evergreen buck decreased from the maximum of this year versus a group of other currencies. Market participants made up their mind to take a breather after the abrupt appreciation of the evergreen buck provoked by Trump's decision to withdraw from the nuclear deal with Iran.
The US dollar index that gauges the purchasing power of the evergreen buck to a pack of six major currencies, headed north by 0.15% being worth 92.80.
On Tuesday, Trump uncovered that America would break up with the nuclear deal with Iran. The given move ramped up the risk of conflict in the Middle East and could generate a domino effect in relation to global crude reserves as well as the surge of the global economy.
The US currency was backed by the surge of revenue of American government bonds above the psychologically decisive level of 3% to the highest mark for two weeks. The steep jump in crude prices gave rise to forecasts about the hypothetical acceleration of inflation.
If the profit of American bonds manages to surpass the value of 3,035%, recorded on April 25, it will become the maximum since the start of 2014.
The US dollar ascended against the Japanese yen. The currency pair USD/JPY rallied by 0.55% reaching 109.72.
The common currency drifted away from the maximum of four months against the evergreen buck. The currency pair EUR/USD ascended to 1.1884 having traded at 1.1823 during the night trading session.
The European currency found itself under pressure following a recent series of downbeat economic reports from the euro zone, which drove worries that the ECB might not complete its financial stimulus program in September, as some traders expected.
The British pound rallied against the greenback. The currency pair GBP/USD jumped by 0.18% being worth 1.3571.
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.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.