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 ascends on American tax optimism
On Tuesday, the evergreen buck modestly surged versus a basket of the other key currencies because expectations for key tax cuts in America kept backing demand for the US currency.
Estimating the greenback’s value versus a trade-weighted basket of six crucial currencies, the US dollar index gained 0.18% trading at 93.22.
On Monday, the US currency rallied after the American Senate approved a tax overhaul package.
Demand for the US currency kept getting support from hopes that tax cuts for corporations are going to spur the American economy, and also push Treasury yields up because the US authorities become more dependent on debt because of reduced tax income.
Traders are assured that the boost to the American will enable the major US bank to have interest rates lifted at a faster pace. Hopes for higher rates boost the greenback because they make the US dollar more attractive to yield-seeking traders.
Against the Japanese yen the greenback rallied, with USD/JPY gaining 0.18% being worth 112.61.
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…