Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Greenback slumps, pound surges
On Wednesday, the evergreen buck slumped versus a pack of other key currencies due to the fact the UK currency soared after comments on Brexit by EU negotiator Michel Barnier.
Estimating the US currency’s purchasing power versus its six main counterparts, the USD index headed south to 94.57, which is not far from Wednesday’s one-month minimum of 94.34.
Market sentiment was backed by expectations that Canada will join the fresh trade pact between the Mexico and America aimed at modifying the North American Free Trade Agreement.
However, the new trade deal didn’t do much to show how a trade clash between China and American might develop after negotiations the previous week brought no progress and both countries imposed new reciprocal duties on imports.
The evergreen buck demonstrated minor reaction to data disclosing that American economic surge turned out to be stronger than anticipated in the second quarter, demonstrating 4.2% became financial markets were still focused on geopolitical developments.
The UK currency managed to rally. The currency pair GBP/USD surged by 0.95% hitting 1.3000 right after EU negotiator Michel Barnier told that the EU was ready to offer a partnership with the United Kingdom such as has never been with any other state.
The given remarks relieved worries regarding the prospect of a no-deal Brexit.
The common currency steeply dived versus the UK currency. The currency pair EUR/GBP dipped by 0.87% being worth 0.9006.
The evergreen buck rallied versus Japan’s currency. The currency pair USD/JPY added by 0.25% coming up with an outcome of 111.47.
The common currency was nearly intact versus the evergreen buck. The currency pair EUR/USD showed 1.1693.
At the same time, the Turkish lira went down further versus the evergreen buck on Wednesday, suppressed by everlasting uncertainty as for the diplomatic clash between America and Turkey.
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 US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
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.