This week started with the talk of the United States banning Russian oil exports, so XBR/USD saw $130 a barrel. Then the ban became reality. What does it really mean for the market?
Gold soars on American data
On Friday, gold managed to rally following the publication of American economic reports overnight.
On the Comex exchange, June delivery gold futures decreased by 0.2% being worth $1,281.85 an ounce.
The US Department of Labor informed that initial jobless claims headed north by 37,000 to a seasonally updated 230,000 by April 21, thus confounding experts’ forecast for a leap to 199,000.
On Wednesday, the Commerce Department told that core durable goods orders managed to leap by 0.4% in March, surpassing analysts’ forecasts for a 0.2% ascend.
As a matter of fact, without aircraft, non-defense capital goods orders that appear to be a closely watched gauge of business spending plans inched up by 1.3% in March, which is above hopes for a 0.1% rally.
Investors’ focus is going to be on the first-quarter GDP data due a bit later in the day. The data is anticipated to reveal that the American economy keeps outperforming. Traders expect a 2.2% annualized gain.
However, some market experts told that the data might demonstrate the impact from the government shutdown in 2018.
As experts pointed out, they note greater uncertainty in the first quarter GDP than usual due to the government shutdown over December-January that provoked delayed salary payments for up to 800,000 federal staff members as well as disruption to tax refunds and also regulatory approvals.
The USD index, gauging the US currency’s purchasing power versus a number of six main currencies, showed 97.843, decreasing by 0.1% from a maximum of 97.958 hit overnight.
The common currency demonstrated an outcome of $1.1143, having slumped to $1.1125 overnight.
Additionally, the UK pound was worth $1.2909, having declined to a two-week minimum of $1.2867 on Wednesday.
For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on November 5, 14:30 GMT+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.