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 six-week minimum vs yen
On Thursday, the evergreen buck kept to a six-week minimum against the Japanese yen due to the fact that risk aversion gripped broader financial markets against the backdrop of worries that the US-China trade war could escalate.
Financial markets were nervously waiting for the beginning of two-day trade negotiations in the US capital later in the global day to see if China’s negotiators can persuade the US government to back down on a threatened tariff lift on Friday.
The evergreen buck kept to 109.910 yen having tumbled to 109.70 overnight that appears to be its weakest reading since March 25.
The Japanese yen that has rallied versus a number of its counterparts, tends to attract demand in times of market turmoil and political strife.
This week hopes that China and America would come to a compromise in the near future to conclude their trade conflict have been upended, thus sending traders away from risky assets.
Meanwhile, global shares have rebounded, while government bonds have tacked on.
The US government has accused China of backtracking on commitments made during trade talks and American leader has threatened to lift existing levies on Chinese exports on Friday and slap fresh duties soon if there’s no deal.
Meanwhile, the Australian dollar hit a four-month minimum of 76.55 yen. This week the Australian dollar has lost about 1.8% versus the Japanese yen.
As for the common currency, it kept to a four-month minimum of 122.89 yen, having decreased over 1% this week.
Versus the evergreen buck, the common currency stood still, sticking with $1.1190, having fluctuated the whole week in a tight band $1.1218-$1.1155.
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.