On Friday, the evergreen buck declined versus its counterparts due to the fact that Fed Vice Chairman Richard Clarida expressed concerns as for global surge and came up with quite dovish remarks on monetary policy…
Greenback tacks on after Fed minutes
On Thursday, the evergreen buck generally strengthened versus its main rivals because the latest Fed minutes showed that further interest rate lifts are already in the pipeline. As for Australia’s currency, it went down against the backdrop of domestic political turmoil.
Tracking the greenback’s purchasing potential versus its primary rivals, the USD index managed to add up to 0.34% being worth 95.32. Yesterday, the index reached a minimum of 94.83, which is its lowest outcome since August 8.
The evergreen buck was underpinned after Fed policymakers told they still expect the American economy to further expand at an above-trend tempo, thus justifying further rate lifts.
The Fed minutes also disclosed that officials debated how global trade tensions could impact businesses as well as households.
The key US bank has had rates increased twice in 2018 and it’s anticipated to keep doing so. What’s more, another two lifts are supposed to take place before the years end.
The major US currency got an extra boost from the political crisis in Australia that suppressed the Australian dollar.
Malcolm Turnbull, Australian Prime Minister was clinging to power after several senior government ministers resigned in the face of a leadership downtime in the ruling Liberal party.
The currency pair AUD/USD slumped 0.82% hitting 0.7290, thus re-approaching the nineteen-month minimum of 0.7201 recorded on August 15.
Worries as for political risks surrounding US leader following the criminal conviction of two associates as well as concerns regarding US- China trade clashes also backed safe haven demand for the evergreen buck.
On Thursday, a fresh round of American duties on $16 billion of imports from China came into effect, followed instantly by the Chinese government slapping retaliatory duties on $16 billion of American imports to this Asian country.
The evergreen buck soared against Japan’s currency. The currency pair USD/JPY rallied by 0.22% reaching 110.79.
The currency pair EUR/USD slumped by 0.35% trading at 1.1554.
On Friday, the UK currency managed to inch up notwithstanding worries over Brexit as well as the resignation of major statesmen in Prime Minister Theresa May’s cabinet…
On Thursday, the evergreen buck surged versus its counterparts because mostly bullish economic data managed to reaffirm investor hopes that the American economy is still on firm footing, while a dive in the UK currency also backed sentiment…
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…