Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Forex news for January 31
Good morning! The middle of the week is full of the highly important events from the economic calendar.
Let’s look at what has already happened in the financial world.
The US dollar is slowing down against most of the currencies because of the lack of specifics in the Trump’s address. Today the president of the USA Mr. Trump made his first speech to the Congress. He asked legislators to produce legislation to invest $1.5 trillion in infrastructure. Also, he said about his success in the economic growth and the position of America in the world. Mr. Trump offered a plan on granting citizenship to children of illegal immigrants. All words of Trump were common, that is why his speech did not support the weakening dollar.
Australian inflation data was delivered today at 2:30 MT time. The figure of 0.6% is lower than expected 0.7%, but not too much. That is why we could see a slight fall in a few points of the Australian dollar, because of a smaller chance that the Reserve Bank of Australia will raise interest rates soon.
So now we will move on to important events that economic calendar offers us today.
European inflation data is delivered today at 12 o’clock in the afternoon. The forecast is not encouraging for the European Union. Eurostat predicts lower figures than in January. It can cause weakening of the euro.
Canadian monthly GDP data will be released today at 15:30 MT time. The forecast is positive, it gives good chances to the loonie to strengthen its positions.
This will be the last Federal Reserve meeting for the chair Janet Yellen. Federal funds rate and the central bank’s statement will be out 21:00 MT time. More likely that interest rates issue will not be discussed directly, however, there will be clues about the future monetary policy. Yellen will sum up results of tax cuts and economic growth of the United States. Experts expect a hawkish-sounding speech from the current chair.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.