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 is nearly intact at 1-week minimum vs. counterparts
On Friday, the evergreen buck was nearly intact sticking to a one-week minimum versus other key currencies. It’s because worries over the fate of a highly-anticipated American tax reform bill applied pressure on the US currency.
The greenback was pressured due to the news that the Senate Republicans' bill tax overhaul would postpone implementation until 2019.
Like their House rivals’ version, the Senate's proposal also suggests cutting the corporate tax rate from 35% to 20%.
Besides this, both bills would add approximately $1.5 trillion over 10 years to the American budget deficit as well as national debt.
The currency pair EUR/USD was intact being worth 1.1641. GBP/USD slid 0.11% showing 1.3131.
USD/JPY was intact, sticking to 113.49. Meanwhile, the currency pair USD/CHF managed to grow 0.20% trading at 0.9948.
AUD/USD gained 0.09% demonstrating 0.7686, NZD/USD dived 0.10% hitting 0.6939.
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.