Trading on geopolitics on March 14-18
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
UK pound edges up on hopes for Brexit deal
On Tuesday, the Japanese yen went down on news that a Japanese chip manufacturer was purchasing an American rival for about $6.7 billion. Meanwhile, the UK pound held onto overnight profits right after the EU’s key negotiator backed expectations that a Brexit deal can be reached in the nearer weeks.
Eventually, most other key currencies were in tight ranges because market participants waited for further developments in international trade clashes, in particular on any American move to impose fresh levies on China in the face of heightened tension between the two leading economies.
On Tuesday, the UK currency jumped by 0.1% hitting $1.3041.
Market experts stress that if the talks for Brexit conclude on a positive note, it will definitely underpin the British pound.
The common currency was nearly intact, sticking with $1.1601. It rallied nearly 0.4% during the previous trading session, backed by an easing in worries over Italian debt.
Versus the UK currency, the euro hit 88.94 pence, having dived to a fresh one-month minimum of 88.91.
Policymakers at the BoE as well as ECB are generally anticipated to leave their policy settings intact at their respective gatherings on Thursday.
Tracking the greenback’s purchasing potential versus its primary counterparts the USD index stood still at 95.140, having lost 0.2% overnight.
News that Japan’s chip manufacturer Renesas was purchasing its American rival Integrated Device Technology for up to $6.7 billion put pressure on the Japanese yen.
The evergreen buck jumped by 0.3% hitting 111.41 yen due to the fact that market participants also cut some of their safe-haven holdings of the Japanese yen because the benchmark Nikkei 225 stock index tacked on by over 1% and also on expectations for a Brexit deal.
Additionally, the Australian dollar soared by 0.15% reaching $0.7123.
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Forex, stocks, oil, and gold on Feb 28 - March 4
Last week was super intense! Geopolitical turbulence made the Russian ruble the most volatile currency. Gold rose and fell by more than 8000 points each time.
British inflation may send the GBP up
Great Britain will publish the Inflation Rate on October 20, at 09:00 MT time (GMT+3).
Latest news
What’s New with Australian Unemployment Rate?
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
Can the UK CPI surprise?
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Retail Sales Update
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.
