Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
GBP/USD goes down steeply to 1.2870
On Monday, the GBP/USD pair didn’t manage to sustain the revival above 1.29 handle, and took a steep U-turn over the previous hour, as the bears were about to test the 1.2850 support.
The currency pair GBP/USD slumped below daily pivot, showing 1.2887
The latest series of dismal British fundamentals also keeps market sentiment around the British pound undermined because traders fear that the negative macro news could keep the Bank of England away from maintaining its latest hawkish stance.
Further, renewed weakness in crude prices along with fresh USD buying across the board, contributes to the latest leg lower in the spot. The greenback is still broadly underpinned because the bulls keep riding higher on positive American payrolls data published last Friday.
Traders are currently focused on the American labor market conditions index for new trading impetus because the British docket is still data-dry today.
Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.
The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.
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.