What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
Greenback slumps as American bond gains dive
On Tuesday, the evergreen buck went down in Asia due to the fact that American Treasury gains slumped to three-month minimums. That’s an indication that some market participants were wagering the key US bank would speed down the pace of its rate lifts.
The weakness in the evergreen buck occurred in the face of a temporary truce in the US-China trade clash that has improved investor confidence in risky currencies versus the safe-haven US dollar.
On Tuesday, the American 10-year Treasury gains dived to 2.94%, thus demonstrating the lowest value since mid-September. Apparently, the difference in gains between the American 2-year and 10-year appeared to be the smallest since July 2007.
The two-10-year yield curve turns out to be a major focus for market participants because an inversion is considered to be a predictor of the American recession.
Some financial analysts pointed out that diving American Treasury gains are a bad sign for the greenback, especially against the key currencies.
What’s more, American Treasury gains have already approached key technical support levels, and a break of which could apply more pressure to American Treasury gains and the evergreen buck.
A common gauge of the purchasing strength of the American currency against its primary rivals the USD index lost 0.23% showing 96.8.
The evergreen buck had been backed for most of this year by a firm American economy as well as a relatively hawkish Federal Reserve generally anticipated to have its policy interest rate lifted later this month.
The previous week the evergreen buck was pressured because the market took remarks from Fed Chair Jerome Powell as indicating a slower tempo of rate lifts.
The greenback went down by 0.5% versus the offshore Yuan hitting 6.8375.
Against the Japanese yen the greenback lost 0.4% reaching 113.13.
What will happen? US consumer confidence will be announced at 5:00 MT (GMT+3) on Tuesday, July 27…
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.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!