Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Aussie and Kiwi are at 4-month peaks vs. weaker US dollar
On Monday, the Australian and New Zealand dollars were keeping to four-month maximums versus their American rival because the broadly stronger common currency kept weighing heavily on the US currency notwithstanding Friday's mostly positive American data.
The currency pair AUD/USD tacked on 0.34% hitting 0.7944, which is the highest value since September.
The common currency strengthened broadly because Thursday’s minutes of the European Central Bank’s December gathering told that officials could move to a gradual shift in policy guidance from the first quarter 2018.
Any changes to the ECB’s guidance would probably be considered by market participants as a sign that policymakers are ready to start winding down their bond purchasing stimulus program.
The greenback neglected Friday’s data showing that underlying American consumer prices reported their largest leap for 11 months in December, thus contributing to hopes that inflation will step up in 2018.
The currency pair NZD/USD gained 0.28% to 0.7268.
Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.
The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.
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…