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 trades sideways
On Tuesday, the evergreen buck was trading sideways, having slumped on Monday following remarks from the Fed’s Charles Evans suggesting that there won’t be any change in interest rates for more than a year.
Evans told that he’d be quite comfortable with interest rates frozen where they’re until the fall of 2020, the outcome he thought would assist to ensure that inflation gets back to the Fed’s objective of 2% having dived for the last time.
The major US bank’s adoption of a looser policy stance hasn’t managed to provoke any considerable weakening of the evergreen buck because many other major financial institutions have followed it in giving up any plans for higher interest rates.
Overnight, Australia’s key bank had become the latest central financial institution to cling to an easier monetary policy. As follows from the minutes of the RBA’s recent policy meeting, if inflation didn’t soar from its current levels, and also if joblessness started to jump, then a tumble in the cash rate would probably be appropriate.
Following the news, the greenback went up by about 0.4% versus the Australian dollar.
Estimating the evergreen buck’s purchasing potential versus its main rivals the USD index stood still with a reading of 96.555.
Meanwhile, the common currency stood still, sticking with $1.1307. As for the UK currency, it dived a bit to $1.3090. Besides this, the Turkish lira was still pressured having reached a six-month minimum versus the evergreen buck on Monday.
The RBA’s move followed similar ones by the BoE, BOJ, ECB, and also the Reserve Bank of New Zealand for the last time.
Aside from that, the German ZEW confidence index is going to be uncovered at 05:00 AM ET, while the British March labor market data will be revealed at 04:30 AM.
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.