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 stabilizes versus yen
On Wednesday, the evergreen buck managed to stabilize versus the Japanese yen because the revenue of American Treasuries rebounded from the minimums provoked by worries over the worsening trade relations between China and the United States, although the constant worries of a trade conflict keep the greenback pressured.
By the way, yesterday the evergreen buck went down abruptly versus the Japanese yen after it became known that American leader announced his willingness to put 10% tariffs on imported China’s goods for up to $200 billion. Duties for the initial list of goods worth nearly $34 billion are going to be imposed from July 6. Responding to this move, China’s Ministry of Commerce told that it’s going to take strict countermeasures if America comes up with an extra list of duties.
The given escalation of tension generated a risk aversion as well as a sell-off in global stock markets.
The evergreen buck managed to revive having declined versus the Japanese yen because some degree of calm got back to wider financial markets. At the same time the revenue of American Treasury bonds ascended from three-week minimums.
Along with the Swiss franc and the Japanese yen, the evergreen buck also appears to be a protective asset. However, in this regard it can’t outperform the yen. Some financial analysts point out that the greenback’s status of safe haven can be questioned because for the last time it has become an extremely profitable asset.
The New Zealand dollar managed to rally a bit after the publication of New Zealand's balance of payments data for the first quarter.
In the first quarter of this year New Zealand posted a current account surplus of about NZ $ 0.18 billion. The given outcome beat hopes for a surplus of approximately NZ $ 0.05 billion following a deficit of NZ $2.77 billion for the last three months.
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.
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…