Greenback Shines as Market Sentiment Shifts.
“China lockdown and economic tension in Europe threaten the market.” The financial market slumps into turmoil as equities slid further into oblivion while greenback touches a two-decade high. A series of hawkish signals delivered by the Federal Reserve switched investors’ perceptions, piloting their focus towards the greenback. Subsequently, China’s latest trade data for April came in with a single digit of 3.9%, its lowest since June 2020. The data raised concerns as negative
China slows, Aussie tumbles.
“China exports slowed; imports flatten in April.” Greenback soared to its highest level in two decades as traders seeks for safety due to global economic slowdown concerns. Earlier today, China latest data shows slower export growth since June 2020, coming in at single digit of 3.9% for April. The data has raised traders’ eyebrows as repercussions from recent lockdown began to slip into their economic momentum. Likewise, the data came in contrast as to recent data from the US. Last
China Covid woes spur risk aversion.
“No end in sight for coronavirus infection in Beijing – said locals.” Beijing local government began to shut down public transport and extended restrictions on public venue last Wednesday. The effort was taken to contain coronavirus infections while at the same time, avoiding the same fate bestowed upon Shanghai – lockdown which lasted more than a month. Dozens of new cases pop up each day, in which the local government hoped mass testing and contact tracing would help to minimize
Fed pours cold water on rate hike.
”Powell: We are not considering 0.75% rate hikes for now.” Federal Reserve delivered their monetary policy as expected, raising interest rates by 50 basis points to a range of 0.75% - 1.00%. Concurrently, they announced to start trimming their massive balance sheet next month, a calculated move to limit inflation from derailing US economic momentum. In the press conference, Fed Chair Jerome Powell emphasized that Russia-Ukraine war has fueled higher inflation due to energy supply
Greenback pulls back, euro recoups losses.
“US GDP slumped by 1.4% during the first quarter.” Greenback shies away from its recent 20-year high as risk sentiments began to improve on the final day of trading for the month. Yesterday, investors were delivered with disappointing news as recent economic data shows significant contraction in terms of economic growth. Preliminary reading of Gross Domestic Product for first quarter came in at -1.4%, a major pullback when compared to 6.9% from the previous quarter. The slump was due to
Australian dollar clings on to its life.
“Australia’s CPI rose significantly in the first quarter.” The Australian dollar managed to recover from the downside on yesterday due to the release of regional economic data which sparks fresh demand. Australia Bureau of Statistics reported that Consumer Price Index for first quarter rose 2.1%, its fastest pace in two decades. The data sparked speculation that Reserve Bank of Australia may hike their interest rate during next week policy meeting. Nonetheless, overall sentiment in
Greenback on its best track since 2015.
“Bullish prospect toward the US dollar as US economy recovers substantially.” Greenback extended its surge during Asian trading hours, on track for its best monthly gains since 2015. Market participants continues to hoard the currency, thrusting the US dollar to its highest level since pre-pandemic over the backdrop of diverging global monetary policy and economic outlook. In Europe, investors are concerned over energy security and economic prospects after Russia’s gas company Gazprom
NATO Statement Makes EURGBP Drop?
"At the moment, we have not seen the withdrawal of Russian troops" NATO Secretary General Jens Stoltenberg denied that Russia had withdrawn troops from the Ukrainian border. He said the military alliance saw no sign that Moscow was reducing its troop numbers around Ukraine. NATO accuses Russia of misleading the world by saying it is pulling troops to base. In contrast, NATO reports Moscow is adding as many as 7,000 more troops near the Ukrainian border. Will war break out? But for sure, the
AUDJPY Reverse to the Upside?
AUDJPY Pair Rises Up, Test the Resistance Strength at 82.00 Level Since the beginning of the year, the AUDJPY pair has tended to be bearish, even falling 3% or around 250 pips. However, since the end of January, the pair has been showing resistance, even being able to create new higher highs and higher lows which signal the end of the bearish trend. Now the AUDJPY rate looks like it will soon test the strength of the strong key level around 82.00. This is further strengthened by the statement
NZDUSD Going South?
Bearish structure on all timeframes, will NZDUSD form a lower low? New Zealand's Prime Minister, Jacinda Ardern, is still in self-isolation as New Zealand recorded more than 100 new cases of COVID-19 infection. This indicates that the pandemic situation is still quite massive in New Zealand and maybe a negative sentiment for the NZD currency. On the other hand, yesterday's poor American ADP data provided a 'hit' for the USD in the short term as well. However, the US government under the
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