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.
Japanese yen tacks on as China surge decelerates
On Monday, the Japanese yen managed to rally versus the evergreen buck due to the fact that market participants digested the latest signs of a deceleration in China after data showing a dive in fourth quarter surge.
According to official data, the Chinese economy managed to ascend by an annualized rate of 6.4% for the three months to December, tumbling from 6.5% in the third quarter. Eventually, it appeared to be the slowest rate of surge since the global financial downtime, marking the third consecutive quarter of decelerating surge.
Soaring signs of weakness in China that has generated almost a third of global surge for the last time are driving anxiety about risks to the world’s economy.
The evergreen buck tumbled versus Japan’s currency. The currency pair USD/JPY decreased by 0.18% being worth 109.56.
The major US currency had headed north over 1% versus the Japanese yen the previous week, reaching a two-and-a-half week maximum of 109.88 on Friday.
Estimating the purchasing power of the major American currency versus a group of six key counterparts the USD index dived by 0.1% ending up with 95.90, which is not far from Friday’s two-week maximum of 96.05.
Expectations for a truce in US-China trade clashes, a dovish stance of the Federal Reserve as well as optimism that the United Kingdom could dodge a "No-Deal" Brexit are some of the factors, which have ensured the return in investor risk appetite that froze in December as global equity markets went down.
The common currency rallied. The currency pair EUR/USD added 0.22% being worth 1.1384, drifting away from Friday’s minimum of 1.1352.
The UK currency stood still. The currency pair GBP/USD hit 1.2867. On Thursday, the UK currency had jumped to a two-month maximum of 1.3001 on soaring confidence that the United Kingdom is able to dodge a no-deal Brexit, although experienced profit-taking on Friday.
The first days of May suggest the month will be risk-off for the GBP/USD. Here is why.
UK Prime Minister was placed in the intensive care. As a result, the British pound plummeted dramatically today.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!