The head of the Federal Reserve Jerome Powell will testify on the Semiannual Monetary Policy Report on Tuesday and Wednesday
US dollar moves down
On Monday, the evergreen buck lost versus its counterparts, suppressed by a stronger UK pound in the face of strengthening hopes of a UK-EU Brexit deal. Meanwhile, a firmer common currency on upbeat remarks from European Central Bank Mario Draghi also affected the greenback.
Estimating the US dollar’s purchasing potential versus its major counterparts the USD index slumped by 0.05% trading at 93.73.
The UK currency rallied because upbeat remarks from German officials drove investor optimism that the European Union and Britain would eventually come to a compromise on terms for Britain's future relationship with the EU.
The currency pair GBP/USD edged up by 0.41% hitting $1.3123.
Profits in the US currency were also kept in check by a strengthening common currency that had followed a positive assessment of the eurozone from ECB Governor Mario Draghi, who also repeated that the major financial institution’s plan to conclude its massive bond-buying program at year-end.
The currency pair EUR/USD managed to ascend by 0.15% trading at $1.1768.
An everlasting rally in emerging-market currencies compounded the evergreen buck’s timid jumpt to the week because Turkey’s currency as well as the South Africa rand managed to gain notwithstanding analysts warning further profits could be stifled by soaring US-China trade tensions.
Emerging-market currencies turn out to be more vulnerable to US-China trade conflict than other assets because foreign investors are simply repatriating funds in the face of soaring yields in developed markets, while emerging-market economies have forecasts undershot.
China canceled trade negotiations with America that were anticipated to occur this week after both nations slapped new levies on each other the previous week.
It provided little support for Japan’s trade-sensitive currency. Therefore, the currency pair USD/JPY jumped by 0.04% reaching Y112.65.
Moreover, the currency pair USD/CAD jumped by 0.24% trading at C$1.2947, neglecting a soar in crude prices that is prone to spurring the oil-sensitive Canadian dollar.
The United States will publish the non-farm employment change, also known as non-farm payrolls (NFP) at 15:30 MT time on February 7.
The level of non-manufacturing PMI for the United States by the Institute of Supply Management will be published at 17:00 MT time on February 5.
The Federal Open Market Committee will publish its meeting minutes on February 19, at 21:00 MT time.
Will coronavirus continue keeping the markets in fear? What releases should we wait for? Find out in the news!
Tesla stock drops in premarket trades on Thursday. Why? See the article (it's short) and use it to your advantage.