Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Evergreen buck keeps to 2-week maximum in quiet Good Friday trading
On Friday, the evergreen buck is holding near a two-week maximum, on what needs to be a quiet trading session for currencies with most other key American as well as global exchanges unavailable due to the observance of Good Friday.
The ICE Dollar Index, which is a gauge of the evergreen buck’s power against its key trading counterparts, demonstrated a reading of 97.352, heading south by about 0.1% since late Thursday. In fact, the index reached an intraday maximum of 97.43 that happens to be its highest value since April 5, as FactSet has recently informed.
The recent stream of better-than-anticipated data, in particular, the shocking narrowing of the American trade deficit in February, have backed upward updates of American Q1 GDP estimates, due a week from today. In fact, further indications that the world’s number one economy is facing a cushioned deceleration, could help to spur the evergreen buck because economic conditions in other key developed countries are still fragile.
As a matter of fact, the currency pair GBP/USD managed to reach $1.2997 in contrast with the outcome of $1.2978 recorded on Thursday.
The currency pair GBP/USD keeps trading around $1.30 without demonstrating a definite direction. As for shifts in domestic politics, they have been quite neutral this week. Aside from that, the Labour party have managed to move ahead as the probable winner of the next election, at least it’s ascertained by the recent surveys and bookies. Aside from that, the probability of an election has gone down (32% probability this year), as some financial analysts revealed.
The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
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.