USD Gains Momentum
The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!
5 important events this week will bring us
The second half of this week is going to be well loaded with big events. All major currencies will be affected, for this reason, brace yourselves and prepare for some price action.
Main events
- British monthly GDP growth rate (Tue, 11:30 MT time (09:30 GMT))The last two indicators of the monthly GDP growth rate have been at -0.1%. If the monthly GDP growth for October is better than the expected 0.1%, it will make the British pound rise.
- Federal Funds Rate (Wed, 21:00 MT time (19:00 GMT)) The American financial authorities will announce the interest rate and release the monetary policy statement. They will also give the economic projections for the nearest future and explain the main issues behind the chosen monetary stance. Steady rate (currently at 1.75%) and positive perspectives will support the US dollar.
- The British Parliament elections (Thu, all day)Finally, we will see the resolution of the months-long parliamentary debates and clarification of the coming course of development in Great Britain. Definitely, it is going to be a hard day for the British pound, but the victory of Boris Johnson would boost it.
- ECB Main Refinancing Rate and Press Conference (Thu, 15:30 MT time (13:30 GMT))The European Central Bank will announce the interest rate, to which no change is expected (currently at 0%); more importantly, the ECB head Christine Lagarde will give a press conference, which will reveal the economic outlook of the euro area and the intentions of the monetary policy makers. A positive tone of the speech will strengthen the euro.
- American monthly retails sales (Fri, 15:30 MT time (13:30 GMT))Although not a major indicator, still the retail sales give a very representative outlook on consumer sentiment. If the picture is more positive than the market expectation, the US dollar will rise.
Background tension
Strong jobs data provided by the Non-Farm Payrolls on December 6 boosted the US dollar. However, the upward movement of the US dollar does not gain full power as there still are serious concerns among the investors on the next stage of the US-China trade war. The deadline of December 15 for imposing new tariffs on the Chinese goods by the US is still in place, while the last comment from the US President Donald Trump was that he liked where the negotiations were going. This means that tensions will keep the market’s optimism in check until next Monday at the very least.
Similar
NVIDIA to Become the Next Tesla
The United States has one week before default, and NVIDIA may become the next Tesla. What else drives the market?
Progress in US Debt Talks, Gold Is Down
Some progress in US debt ceiling talks is made, and the PMI data is out.
Latest news
No More US Debts in Sight
The first day of June should’ve brought us the US default. Unsurprisingly, the US House passes the debt ceiling bill at the latest possible moment.
Gold Rises as Central Banks Buy More
About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.
US Evades Default This Time
Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!
