EUR supported by the European Commission
The EUR made a significant rise on the news of the stimulus expansion. Will it last long?
UK pound rallies on retail sales
On Thursday, the British pound managed to ascend to the maximum of this trading session after the publication of data that the volume of retail sales in Great Britain beat forecasts in May because of good weather as well as royal wedding.
The currency pair GBP/USD inched up about 0.49% hitting 1.3442 from the previous outcome of 1.3396 before the report was uncovered.
According to the National Statistical Office, in May, the volume of retail sales in Great Britain tacked on considerably surpassing forecasts by about 1.3%. April’s data was updated upward to nearly 1.8%.
British customers shelled out more money on household goods and food before the wedding of Prince Harry and American performer Megan Markle. Besides this, the soar in expenses can be also explained by good weather in the middle of May.
Moreover, according to the report, the UK economy is gaining momentum once again after a steep slowdown because of previous bad weather conditions.
The UK currency soared in the face of the depreciation of the greenback, rebounding from the positions hit yesterday after the second lift in the Fed's interest rate in 2018 as well as more hawkish statements in favor of tightening monetary policy. The Fed stressed it’s about to double the interest rate in 2018 once again.
The Federal Reserve illustrated the situation in the American labor market as positive. Simultaneously, economic activity in America is steadily going up.
The US dollar index, evaluating the purchasing power of the American currency against six main counterparts, lost 0.29% showing 93.29.
Market participants are still concerned that the Trump administration is about to impose duties worth about $50 billion on China’s goods. The Chinese government warned the United States that similar actions are going to be taken in response to US goods.
Similar
May 2020 forex season trading
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.
GBP: April gains undone
The first days of May suggest the month will be risk-off for the GBP/USD. Here is why.
Latest news
US stimulus package improved sentiment
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
The US weekly labor data is out!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.
Main market news on September 23
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.
Deposit with your local payment systems
