Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
UK pound goes down amid Brexit uncertainties
On Tuesday, the UK pound headed south in Asia after British lawmakers denied all alternative options to the country’s Prime Minister Theresa May’s Brexit proposal.
As a matter of fact, the currency pair GBP/USD tumbled by 0.2% being worth 1.3068.
Investors are closely watching further developments on the Brexit after the British legislative body once again denied all alternative options to May’s withdrawal proposal.
The four options denied include a call on the UK cabinet to negotiate a permanent customs union, Britain joining the European Free Trade Association as well as European Economic Area, a choice between revoking Article 50 and Brexit, and also a confirmatory public vote on the Brexit.
For Great Britain, the legal default will be departing from the European bloc for 11 days.
Due to the fact that the House hasn’t demonstrated productive voting, for 11 days, Great Britain will depart from the European bloc even without a deal unless the prime minister acts, as some experts pointed out.
Besides this, the USD index, gauging the evergreen buck versus a number of its peers, rallied by 0.1% trading at 96.893.
A firmer-than-anticipated ISM manufacturing data was found a tailwind for the evergreen buck.
For March, ISM manufacturing data revealed an uptick to 55.3, which surpassed an estimate for 54.5. An outcome above 50 in the ISM index stands for an expansion in manufacturing, accounting for nearly 12% of the American economy.
The currency pair USD/CNY managed to jump by about 0.2% being worth 6.7198.
The currency pair AUD/USD declined by 0.1% right after the Reserve Bank of Australia held its interest rates at 1.5% exactly as anticipated.
Additionally, the currency pair NZD/USD dived by 0.4% showing 0.6775.
Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
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.
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.