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 head south vs. broadly stronger US dollar
On Wednesday, the Australian and New Zealand dollars slumped because hopes for another US rate hike in December gave broad support to the US currency. Additionally, market participants were closely watching the Reserve Bank of New Zealand's interest rate verdict on Thursday.
The currency pair AUD/USD went down 0.38% being worth 0.7856. That’s the lowest outcome since August 16.
On Tuesday, Fed Chair Janet Yellen stressed that the major US bank requires continuing gradual interest rate leaps notwithstanding uncertainty as for the path of inflation.
The greenback had already gained support after on Monday New York Fed President William Dudley told that the Fed is on the verge of gradually lifting interest rates as factors depressing inflation are receding and the American economy's fundamentals are sound enough.
The currency pair NZD/USD edged down 0.17% trading at 0.7195.
The RBNZ is believed to leave interest rates intact at 1.75%, although comments following the verdict will be closely watched for any clues on future policy decisions.
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…