The EUR made a significant rise on the news of the stimulus expansion. Will it last long?
UK pound goes up
On Thursday, the UK currency managed to ascend after news that British Prime Minister Theresa May had support from her government for a draft Brexit pact secured.
Eventually, the deal keeps the United Kingdom within the customs union of the European bloc for an unspecified amount of time, including a 21-month transition period after Britain’s scheduled departure in March of 2019. That’s what the BBC revealed.
The collective verdict of the UK government was that the cabinet requires agreing the draft withdrawal pact along with the outline political declaration, as May told outside her Downing Street residence following a five-hour government gathering.
May told that she’s assured that the given decision is in the best interests of here country.
Nevertheless, Michel Barnier, the EU's chief Brexit negotiator told that there's still much work to do, so the path might bring new challenges.
As Bloomberg told, British Pensions Secretary Esther McVey along with fellow cabinet ministers, such as Penny Mordaunt and Andrea Leadsom might step down in the days ahead due to the fact they weighed up whether they can be in May’s cabinet to see through the new terms of Brexit.
Assessing the purchasing power of the American dollar versus a group of its main peers the USD index went down by 0.2% trading at 96.72.
In addition to this, the currency pair AUD/USD rallied by up to 0.7% trading at 0.7277 after data disclosed that in October Australia managed to generate a net 32,800 jobs, surpassing forecasts of a 20,000 leap.
Unemployment stuck with 5% and the participation rate added from 65.4% to 65.6%.
The currency pair USD/CNY slumped by 0.2% trading at 6.9403 because the People’s Bank of China set USD/ CNY mid-point at 6.9392 compared with yesterday’s reading of 6.9402.
The currency pair USD/JPY inched down by 0.1% reaching 113.49.
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.