The EUR made a significant rise on the news of the stimulus expansion. Will it last long?
UK currency goes up notwithstanding Brexit woes
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.
As a matter of fact, the currency pair GBP/USD added 0.34% ending up with 1.2818 having gone down to 1.2739 on Thursday right after Brexit minister Dominic Raab stepped down.
As Raab told, he couldn’t back the prime minister’s support terms of that draft.
Besides this, up to 16 members of the Conservative Party have called for a vote of mistrust of the country’s Prime Minister, stepping up the likelihood of the UK leaving the European bloc in March without a deal.
By the way, without a deal, Great Britain would move to customs pact set by the WTO for external states.
Assessing the purchasing power of the major US currency versus its main counterparts the USD index managed to head north by up to 0.09% being worth 96.88 because trade war uncertainty weighed.
On Thursday, a White House statesman told that China’s written response to American demands for trade reform won’t probably provoke a deal in negotiations between American President Donald Trump as well as Chinese President Xi Jinping at the G20 summit a bit later this month.
Levies on $200 billion of China’s products are set to surge from 10% to 25% on January 1.
The evergreen buck managed to dive versus the safe-heaven Japanese currency. The currency pair USD/JPY headed south by 0.30% being worth 113.30. As a rule, traders tend to invest in the Japanese currency, traditionally viewed as a safe asset in periods of risk aversion.
The currency pair EUR/USD slumped by 0.01% showing 1.1326. Additionally, NZD/USD dived by 0.37% showing 0.6803. The currency pair AUD/USD lost about 0.30% reaching 0.7254.
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.
The first days of May suggest the month will be risk-off for the GBP/USD. Here is why.
The RBA will make a rate statement on August 4 at 7:30 MT time.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.