Zealand Dollar, or just the Kiwi, according to the traders' slang term, could
become the second of the major currencies to strengthen on a systematic basis
after the Loonie, which is the Canadian Dollar. The last one has been embarking
on a healthy path since the third week of April when the central bank of the
country changed the size of the quantitative easing (QE) monetary program from
$4 billion to $3 billion loonies per week, thus partly compressing the growth
pace of the excessive money supply.
Pound is among the most prominent currencies that are seen to be benefiting from
the U.S. Dollar weakness in the end of July. And, there are several drivers that
seem to be pushing the Pound upside.
Dollar is consciously being pressured by the Federal Reserve (Fed) with its
loose monetary policy. The Fed and its Chair Jerome Powell reconfirmed recently
its commitment to continue quantitative easing policy with pumping as much as
$120 billion each month for an uncertain period of time.
corporate earnings updates from the market's world-known issuers, followed by
CEOs conference calls - as it usually happens - wore ruts in the fundamental
background road of the week. None of them tried to eclipse the overall sunny
sentiment with even one cloud.
pioneer mass manufacturer of electric vehicles, broke its own delivery record
by building and shipping more than 200,000 vehicles during the second quarter.
That was as much as 151% growth over last year. The company also added nearly
1,000 supercharging stations to its network.
prices have been performing a downside movement since mid-July as they fell
from $1146 per troy ounce to $1054, or by almost 8%. Platinum went under a
global sell off of risky assets used for the production of other items – crude,
stocks, metals, etc. fell victim to negative market sentiment as new, more
contagious and deadly COVID-19 Delta and other strains spread around the globe.
signals of possible early tapering of monetary stimulus in the United States due
to the rise in inflation levels are seen to be much more visible recently.
bulls were routed during the first trading day of the week, both at the
American and the European battlefields. The U.S. S&P 500 broad market index
futures initially lost 96 points just one hour before the closing of Monday's
session, touching the local bottom, which was 3.65% lower compared with the
multi-month high of 4384.38 points on July 14.
that the single European currency has been laying on the side of risky assets over
recent months. All of these risky assets are currently standing against the
U.S. Dollar, which has been acting like a safe haven asset so far this year.
The dovish rhetoric of Federal Reserve’s (Fed) Chair Jerome Powell in the U.S.
Congress seems to be pressuring the Greenback while supporting the Euro.
Mr. Powell streamed
placidity despite shocking inflation figures in the United States that hit
As the U.S.
Federal Reserve’s (Fed) head Jerome Powell and Treasury Secretary Janet Yellen
are ready for two days of Congressional testimony, against a thrilling
background of another inflation spike in the American economy, the three major
New York stock indexes continue to consolidate tranquilly in the direct
neighbourhood of all-time highs. The U.S. consumer price index (CPI) set a
fresh record of 5.4% annual growth, with the so-called "core" CPI
excluding food and energy segments also hitting the 4.5% bar, which is an
absolute maximum of domestic price dynamics since 1991.
European central bank (ECB) made an unexpected move in its monetary policy by
changing its inflation target from the previous “below, but close to, 2% over
the medium term” to “2% over the medium-term with a ’symmetric’ aim”. The new
approach of the ECB is clearer as the Governing Council of the ECB is now
considering negative and positive deviations from this target due to the fact
that now they are equally undesirable.
this statement eliminates “any possible ambiguity and resolutely conveys that
2% is not a ceiling” as the President of the ECB Christine Lagarde said.
Organisation of the Petroleum Exporting Countries (OPEC) and its allies failed
to reach an agreement to extend the production cut deal beyond April 2022. Three
days of dramatic dispute ended without an expected plan being reached
concerning the increase of production quotas by 400,000 barrels per day which
was predicted to be set for August-December 2021. The meeting of OPEC+
countries was postponed three times, but eventually ended with no agreement.
for crude oil is rising along with global economic recovery and reviving
The stocks of
the U.S. financial system grandees are on the rise again, after about a
three-week period of a corrective mood. On the night of June 28th to 29th, five
of the six largest American banks increased the amount of their quarterly
dividends, soon after the Federal Reserve System (Fed) gave permission for this
move. As a whole, the dividend sizes for these six financial institutions would
be increased by 40%. However, each financial institution has made its own
decision about the scale of the increase.