The most impactful releases of this week will fill the market with volatility and sharp movements. Be ready to take action!
Greenback stays low as trade feud worries loom
On Monday, the evergreen buck started in Asia morning at a minimum because worries of a global trade feud provoked a sell-off notwithstanding the previous week’s short-lived ascend when fresh Fed Chair Powell officially confirmed the tightening policy.
Estimating the greenback’s value versus a group of six crucial currencies, the US dollar index dived 0.02% being worth 89.93. The greenback was staying below the 90 mark on Monday morning.
Donald Trump’s tariff policy on aluminum and steel excited market participants around the globe because the administration emphasized there wouldn’t be any exclusion for any market partner. The evergreen buck has been going down since Trump uncovered the tariff update last Friday.
The currency pair USD/JPY headed south 0.26% showing an outcome of 105.47. It’s because the anti-risk Japanese yen managed to gain ground in the face of worries of a global trade conflict. The currency pair had been fluctuating in red and also hanging around the 105 mark. Bank of Japan’s chief Kuroda pledged to maintain Japan’s monetary policy and also expected to meet the inflation 2% objective by 2020.
The Australian dollar headed south 0.22% versus the evergreen buck, showing a result of 0.7746. Additionally, the sentiment-linked currency was suppressed by China’s mediocre Caixin PMI report. February’s PMI for the private service sector accounted for 54.2 compared to the expected outcome of 54.3.
Aside from that the People’s Bank of China dared to set the fix rate of the national currency versus the evergreen buck at 6.3431 compared to Friday’s rate of 6.3334. The currency pair USD/CNY inched down 0.26% hitting 6.3312.
In China, the National People’s Congress, which opened today is in focus. Premier Li Keqiang told that China is going to keep prudent monetary policy intact, while CPI along with GDP surge are targeted at approximately 3% and 6.5%.
We prepared an outlook of major events of this week. Check it and be ready!
Here you'll find what awaits the market this week, from the CPI release to a possible gold plunge.
The first day of June should’ve brought us the US default. Unsurprisingly, the US House passes the debt ceiling bill at the latest possible moment.
About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.
Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!