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.
Big Event for USD: Philly Fed Manufacturing Index
What will happen?
The US will release the Philly Fed Manufacturing Index – the impactful event for the USD and thus for all the major pairs. It will be out on November 18 at 15:30 MT (GMT+2).
Why is it important?
This report is based on the survey of about 250 manufacturers in the Philadelphia Federal Reserve district. They are asked to rate the level of current business conditions. Businesses react quickly to market conditions, that’s why the changes in their sentiment can be an early signal of future economic activity.
Last time, the Philly Fed Manufacturing Index came out worse than expected. As a result, USD/CAD dropped by 130 points just in half an hour after the release.
How to trade on Philly Fed Manufacturing Index?
Open the economic calendar and compare the actual numbers with the market forecast.
- If the Manufacturing Index is greater than the forecasts, the USD will jump.
- Otherwise – fall.
Instruments to trade: EUR/USD, GBP/USD, USD/CAD
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.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
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.