The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
American job surge seen accelerating
In June, American employers increased hiring and lifted wages for employees. These are signs of labor market strength, which could keep the major US bank on course for a third interest rate lift this year.
As a Reuters poll of economists states, on Friday the Labor Department's employment report will most likely show that nonfarm payrolls grew by 179,000 jobs the previous month, having gained 138,000 in May.
The unemployment rate is supposed to remain intact at a 16-year minimum of 4.3%. This year it has sunk five-tenths of a percentage point. Moreover, it fits the most recent Fed median prediction for this year.
Financial experts tell that labor market buoyancy could also stimulate the Fed to unveil plans to start cutting its $4.2 trillion portfolio of Treasury bonds as well as mortgage-backed securities already in September.
In June The Fed lifted its benchmark interest rate for the second time in 2017. However, with inflation dropping further below the central bank's 2% objective in May, financial experts expect another rate lifts only in December.
Happy Monday, dear traders! Hope you had a great weekend and you’re ready for the last trading week in 2022! Later this week we’ll announce some exciting news for you, but now let’s look through some interesting news! Today’s events: USA, UK, Hong…
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.
2022 was rough: inflation, energy crisis, and plenty of other controversial situations…