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 rallies with political and trade risks in focus
On Wednesday, the evergreen buck ascended versus a bunch of other rivals due to the fact that market participants waited for the outcome of trade negotiations between the US and China this week and also closely watched soaring political risks in America.
Estimating the greenback’s purchasing power versus a group of six main counterparts, the USD index managed to add 0.13% hitting 95.26, having dived by 0.69% yesterday.
Market sentiment has been underpinned by the revival of trade negotiations between America and China.
Market participants hope that these negotiations will relieve trade tensions between the world’s two leading economies, notwithstanding Donald Trump’s pessimism as for the prospects of success.
Expectations for progress on trade were generally compensated by worries over American political developments overnight.
The evergreen buck had already been pressured after on Monday US leader told that he didn’t appreciate Fed Chairman Jerome Powell’s intention to have rates lifted.
The key US bank has been lifting rates and it’s anticipated to proceed with it, planning two extra hikes in 2018.
The key US financial institution is expected to unveil the minutes of its August gathering a bit late, with market participants on the lookout for any changes in its outlook on inflation, trade war worries and the US economy.
The common currency headed south versus the evergreen buck. The currency pair EUR/USD inched down by 0.11% being worth 1.1557. On Tuesday, the euro soared by 1.09% versus the evergreen buck, reaching a one-and-a-half week maximum of 1.1600.
The common currency has rebounded since diving to 13-month minimums versus the evergreen buck the previous week in the face of worries as for contagion effects on EU banks from Turkey’s currency downtime.
The evergreen buck leapt versus the Japanese yen. The currency pair USD/JPY added by 0.16% trading at 110.41, soaring from an overnight minimum of 110.02.
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.
The Reserve Bank of Australia (RBA) will make a statement and release a Cash Rate on February 7, 05:30 GMT+2. It's among the primary tools the RBA uses to communicate with investors about monetary policy.
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.