Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Greenback approaches 15-month minimums with US data in focus
On Wednesday, the American dollar was fluctuating close to 15-month minimums versus a currency basket because traders shifted their attention to major economic events this week, especially Friday’s American jobs report for July.
The US dollar index was worth 92.83, having declined to 92.64 on Tuesday, which is its lowest reading since May 2016.
The evergreen buck has been suppressed by a bunch of concerns over political turmoil in the US, not to mention recent dismal economic reports that have spurred doubts over the future pace of policy tightening by the key US bank.
The greenback had been underpinned by the Fed's gradual policy tightening since 2015, although the prospect that other key financial institutions might join it in tightening monetary policy has also contributed to dollar weakness.
Versus the Japanese yen, the greenback grew, with USD/JPY soaring 0.31% hitting 110.69, drifting away from its seven-week minimum of 109.92 demonstrated on Tuesday.
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.
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.
2022 was rough: inflation, energy crisis, and plenty of other controversial situations…