FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews
48 341.17

U.S. CPI pulled the dollar down

13 May 2020

On Tuesday, the U.S dollar traded lower against most major currencies after the release of U.S inflation data and the increasing concerns about the negative interest rate by investors.

As interest rate tends to decline when inflation is low. Distresses about negative interest rate increased after data showed that core consumer-price index, which excludes volatile food and fuel costs, fell 0.4% from the previous month, the overall CPI dropped 0.8% in April from a month earlier which is the biggest the decline since December 2008, and the annual consumer inflation slowed to 0.3%.

Furthermore, the U.S dollar declined after President Trump said that the Federal Reserve should cut interest rates into negative to boost the U.S economy after suffering from the Coronavirus pandemic. In addition, the U.S dollar still under pressure ahead of Powell’s speech tomorrow.

The U.S. Dollar Index, which measures the power of the Greenback against a basket of six major currencies, ended Tuesday’s trading session at 100.
In Europe, the common currency traded higher against the U.S. dollar on Tuesday. The EUR gain from weak U.S dollar and also after Germany introduced an ‘emergency brake’ mechanism and steps to ease restrictions. EURUSD ended the session at 1.08485.

On the other hand, the Sterling extended its losses on Tuesday against the U.S dollar after the unclear lockdown measurements by the government and the increase in UK debt.

The pound declined after Britain overtook Italy as the worst affected country in Europe as the death toll from COVID-19 topped 32,000 and after data showed that debt exceeded $2.5 trillion and its public sector net borrowing might reach 14% of GDP this year. Moreover, investors are still worried about Brexit deal with Europe and the probability of a no-deal. GBP/USD ended the session at 1.22599.

In Safe-havens space, the Swiss Franc overpowered the U.S. Dollar and finished the session at 0.96941 USDCHF. Likewise, In Japan, the Yen increased against the U.S. Dollar to end at 107.149 USDJPY.

Gold prices closed higher on Tuesday at 1702.10 due to the potential of more stimulus from the U.S. Federal Reserve to support the economy. Gold considered a hedge against inflation and with the increase of stimulus in the future, inflation could increase too.

In Canada, the Loonie fell against the Greenback as investors are alarmed about the possibility of a second wave of coronavirus infections. USDCAD ended the session at 1.40791.
In Australia, the Aussie dollar trader lower against the U.S dollar after China imposed an import ban on four Australian abattoirs as China consider the most important trading relationship for Australia. The AUDUSD closed at 0.64715.

Cryptocurrencies were traded higher on Tuesday. Bitcoin closed the session higher at 8807.8 BTCUSD. Litecoin and Ethereum ended the session higher at 39.80 LTCUSD and 187.13 ETHUSD, respectively.



Dollar jumps, gold slumps, stocks nervous
Dollar jumps, gold slumps, stocks nervous

Worries that the US consumer is rolling over were dealt a major blow yesterday after the nation’s retail sales for August overpowered some gloomy forecasts. The retail sales...

17 Sep 2021

Energy is the play: how we get to $100 crude
Energy is the play: how we get to $100 crude

Natural gas futures in Europe and the UK are flying, while our natural gas (NG) CFD (the underlying is traded on the NYMEX) pushed over $5.60 and into 7-year highs...

16 Sep 2021

Are investors sleeping on systematic risk in China?
Are investors sleeping on systematic risk in China?

It’s time to talk about China. The situation is getting dicier as the nation’s second-largest property developer - Evergrande - is on the verge of default. Trading in the company...

16 Sep 2021

Sentiment sours as the S&P 500 tests key support
Sentiment sours as the S&P 500 tests key support

We head to quadruple witching in the US on Friday and notably options expiration (OPEX), and the weakness we see time and again in the week before seems...

15 Sep 2021

Dollar unscathed by soft inflation, equities resume slide
Dollar unscathed by soft inflation, equities resume slide

Dollar takes little damage despite signs US inflation has peaked - Wall Street resumes selloff - all eyes on China contagion risks - Canadian data coming up ahead of elections, gold wakes up...

15 Sep 2021

US inflation under the microscope
US inflation under the microscope

With the Fed having almost locked in a November taper announcement, the question now is whether Chairman Powell will use next week’s policy meeting to give the markets...

14 Sep 2021

Forex Forecasts

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.