Next, what you need to know on Tuesday, May 13:
The US dollar (USD) goes back slightly in the European morning on Tuesday after registering impressive profits against its rivals at the beginning of the week. The European economic calendar will present the data of the ZEW survey – economic feeling for Germany and the Eurozone. In the second half of the day, the data of the April Consumer Price Index (CPI) will be followed closely in the US.
US dollar price this week
The lower table shows the percentage of the US dollar change (USD) compared to the main currencies this week. US dollar was the strongest currency in front of the euro.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 1.19% | 0.76% | 1.09% | 0.55% | 0.00% | 0.50% | 0.88% | |
| EUR | -1.19% | -0.30% | 0.44% | -0.15% | -0.56% | -0.21% | 0.16% | |
| GBP | -0.76% | 0.30% | 0.92% | 0.16% | -0.24% | 0.02% | 0.47% | |
| JPY | -1.09% | -0.44% | -0.92% | -0.54% | -1.69% | -1.44% | -0.45% | |
| CAD | -0.55% | 0.15% | -0.16% | 0.54% | -0.28% | -0.06% | 0.31% | |
| Aud | -0.01% | 0.56% | 0.24% | 1.69% | 0.28% | 0.25% | 0.69% | |
| NZD | -0.50% | 0.21% | -0.02% | 1.44% | 0.06% | -0.25% | 0.34% | |
| CHF | -0.88% | -0.16% | -0.47% | 0.45% | -0.31% | -0.69% | -0.34% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
The USD index won bunder impulse and rose to its highest level in a month about 102.00 on Monday, since the markets celebrated the news that the US and China reached an agreement to pause reciprocal rates for 90 days and reduce them significantly. The main Wall Street indices shot after the opening bell and the Nasdaq Composite rose 4% in the day. On Tuesday morning, the USD index remains in a consolidation phase around 101.50, while the futures of the US stock market rates lose between 0.2% and 0.35%.
The improvement of risk feeling made it difficult to The gold You will be demanded on Monday. The Xau/USD remained under strong bearish pressure throughout the day and fell more than 2.5%. In the first hour on Tuesday, the PAR stars in a rebound and quotes above $ 3,250.
EUR/USD He turned down in the European session on Monday and ended up losing more than 1% in daily terms. The pair recovers slightly in the European morning and quotes slightly above 1,1100.
USD/JPY He won more than 2% on Monday and advanced to his strongest level since the beginning of April above 148.60. The pair corrects down and listed below 148.00 to start the European session. The vice governor of the Bank of Japan (BOJ), Shinichi Uchida, said on Tuesday that there are risks both up and down due to US rates on prices in Japan.
GBP/USD It remains stable around 1,3200 at the beginning of the European session on Tuesday. The United Kingdom National Statistics Office reported earlier on the day that the ILO unemployment rate rose to 4.5% in three months to March from 4.4% in February, as expected. Other details of the report showed that the unemployment request rate remained unchanged in 4.5% in this period, while salary inflation, measured by the change in average gains excluding bonuses, decreased to 5.6% from 5.9%.
After losing more than 0.6% on Monday, AUD/USD Win traction on Tuesday and quotes in positive territory above 0.6400. Australia data showed earlier on the day that Westpac’s confidence improved 2.2% in May from -6% in April.
FAQS inflation
Inflation measures the rise in prices of a representative basket of goods and services. General inflation is often expressed as an intermennsual and interannual percentage variation. The underlying inflation excludes more volatile elements, such as food and fuel, which can fluctuate due to geopolitical and seasonal factors. The underlying inflation is the figure on which economists focus and is the objective level of central banks, which have the mandate of maintaining inflation at a manageable level, usually around 2%.
The consumer price index (CPI) measures the variation in the prices of a basket of goods and services over a period of time. It is usually expressed as an intermennsual and interannual variation. The underlying IPC is the objective of the central banks, since it excludes the volatility of food and fuels. When the underlying IPC exceeds 2%, interest rates usually rise, and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually translates into a stronger currency. The opposite occurs when inflation falls.
Although it may seem contrary to intuition, high inflation in a country highlights the value of its currency and vice versa in the case of lower inflation. This is because the Central Bank will normally raise interest rates to combat the greatest inflation, which attracts more world capital tickets of investors looking for a lucrative place to park their money.
Formerly, gold was the asset that investors resorted to high inflation because it preserved their value, and although investors often continue to buy gold due to their refuge properties in times of extreme agitation in the markets, this is not the case most of the time. This is because when inflation is high, central banks upload interest rates to combat it. Higher interest rates are negative for gold because they increase the opportunity cost to keep gold in front of an asset that earns interest or place money in a cash deposit account. On the contrary, lower inflation tends to be positive for gold, since it reduces interest rates, making bright metal a more viable investment alternative.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
