On Friday, the evergreen buck rallied versus its counterparts reacting to a rebound in American home sales, although profits were tamed by a steep soar in the Japanese yen as American government bond gains dived in the face of worries of the decelerating…
Yen inches up on safe-haven demand
On Tuesday, the Japanese yen strengthened versus the evergreen buck against the backdrop of further political uncertainty in the European Union over Italy’s spending plans. As for the USD index, it rallied too.
The currency pair USD/JPY hit 112.57 losing 0.2%.
As Reuters informed over the weekend, the Italian cabinet actually expected the European Commission to decide to ask Italy to have its draft budget revised later this week.
Italy’s mind-blowing 2.3 trillion euro public debt happens to be one of the largest in the world. There’s no doubt it makes this European country extremely vulnerable as well as a potential source of contagion for other euro zone members, as Reuters pointed out.
Clashes will probably escalate between Brussels and Rome, especially in case the European Council starts an 'Excessive Deficit Procedure' against Rome.
It would require Italy to come up with a clear plan of corrective action to diminish its huge public debt, which currently accounts for up to 130% percent of the country’s GDP in contrast with the 60% allowed by the Maastricht rule.
In addition to this, recent reports ascertained that Brexit negotiations have stalled, causing speculation that UK Prime Minister Theresa May could be deposed by the opposition in her Conservative Party.
The EU council chief, Donald Tusk told that a no-deal scenario turned out to be more probable than ever before.
Assessing the purchasing power of the major American currency against its main opponents the USD index rallied by 0.4% being worth 95.79.
Besides this, the currency pair USD/CNY dived by 0.08% because the People's Bank of China set the reference rate of the national currency at 6.9338 versu the previous day's reading of 6.9444.
The Australian dollar declined by 0.3% hitting $0.7063 versus the greenback. The currency pair NZD/USD lost 0.4%.
On Friday, the UK pound revived in Europe trade from Thursday’s buffeting when the EU admitted only a minimal extension of the deadline for Brexit…
Canada will release the level of core retail sales and CPI on March 22, at 14:30 MT time.
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…