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, while keeping to 6-week high
On Friday, the British pound went down versus the American dollar, though it was still keeping to a six-week peak after British economic surge data turned to be in line with expectations and also amid hopes for tighter monetary policy in Great Britain.
The currency pair GBP/USD reached 1.2985 in Europe.
According to the UK Office for National Statistics, GDP gained 0.2% during the first quarter, which is in line with hopes and a previous estimate. The British economy ascended 2% year-on-year.
A separate report states that the British current account deficit extended to £16.9 billion during the first quarter from £12.1 billion for the last three months.
Financial experts had hoped the current account deficit would extend to £17.3 billion in the previous quarter.
The British pound managed to strengthen after on Wednesday Bank of England Governor Mark Carney told that some removal of monetary stimulus will become required because spare capacity in the economy decreases.
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.
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.