The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
Greenback soars on Fed talk
On Wednesday, the greenback drifted away from 4-1/2-month minimums against a currency basket after solid data backed hopes for more American interest rate lifts this year, while the British pound was knocked by the UK triggering its exit from the EU.
The dollar index, estimating the greenback’s value against six key rivals, managed to grow to 99.751. It crawled off a minimum of 98.858 reached earlier this week, its weakest value since November 11, in the wake of Donald Trump's failure with his healthcare reform bill.
The healthcare failure reform drove doubts that Trump would be able to carry out his fiscal stimulus as well as tax cuts, and weighed the greenback to 110.11 yen, its lowest outcome since November 18.
Besides this, US Federal Reserve Vice Chairman Stanley Fischer also gave the greenback a lift as he stressed in a television interview that two more hikes to American overnight interest rates this year seemed right.
The US CPI and core CPI are due at 15:30 MT time on May 12.
April seasonal patterns weren’t supposed to work, but somehow they did. Even a strong fundamental issue such as the global recession amid the coronavirus couldn’t overwhelm it. That’s why May seasonal patterns may work as well.
Stocks, oil and GBP gain on risk-on sentiment
Investors weigh reopening economies against the growing US-China tension. Which impulse will be stronger?
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