Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
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.
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.
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
The central banks' meetings will highlight the week as well as the PPI release
Good Friday, traders! The markets are frozen ahead of today's NFP release at 15:30 GMT+2…
The USD weakened after Fed Chair Powell hinted at a slowdown of rate hikes, and stocks strengthened. What else is moving the markets today?