How to trade the JPY?
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 extends 4-week winning marathon
On Monday, the evergreen buck rallied versus a basket of key counterparts having posted four consecutive weeks of revenues because financial markets braced for the first rate lift of 2018 from the US major bank.
With fresh Fed Chair Jerome Powell's first monetary policy gathering, bond markets have already prepared for one rate lift and plus two more a bit later in 2018. Market participants are going to closely watch whether the new Fed Chair confounds hopes for future rate lifts or not.
Positioning information on some bank models, including BNP Paribas demonstrate that this week market participants have already got down to unwinding their short positions on the US currency in the run-up to the policy, although futures data drops a hint at a bit more cautious attitude to the major American currency.
Risk aversion turned to be evident in financial markets with equities in the European Union starting on a weaker note as well as the volatility index inching up because on Monday the finance ministers of the 20 big world powers attend a major G20 summit.
Versus a group of six key currencies the US dollar index rallied 0.1% being worth 90.345.
The US dollar index reached a two-week maximum on Friday hitting 90.38 after data disclosed a February surge in American industrial production.
However, market participants warned against putting much value on the dollar bounce. It’s because the evergreen buck was supposed to stay weak. It definitely echoes the pattern of 2017 by dropping in the aftermath of the rate lifts.
Meanwhile, the common currency headed south 0.1% versus the evergreen buck showing a result of $1.22755.
The British pound stood still sticking to $1.3941.
Additionally, the Hong Kong dollar went down to a fresh 33-year minimum versus the US currency.
Similar
Is Inflation Defeated?
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.
Who Will Rule the US?
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.
Latest news
What Currency Will Overperform?
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.
Investor Positivity May Fade After Powell's Speech and CPI Release
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.
What Can Rule the Roost in January 2023?
2022 was rough: inflation, energy crisis, and plenty of other controversial situations…
