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 leaps ahead of Fed decision
On Wednesday, the evergreen buck soared because market participants waited for the outcome of the Fed’s policy gathering for further clues about future tightening. Meanwhile, the beleaguered New Zealand dollar recovered following upbeat jobs data.
Tracking the greenback’s value against a basket of six main counterparts, the US dollar index gained 0.1% trading at 94.680.
In Asia, the New Zealand dollar rallied 0.9% being worth $0.6906 having hit a one-week maximum of $0.6915, spurred by data disclosing that the country's jobless rate went down more than anticipated to a nine-year minimum of 4.6%.
The New Zealand dollar had been pressured for recent weeks on worries of the new Labour-led coalition government's left-leaning policies, in particular a clamp down on migration and foreign investment.
The Fed is generally believed to leave interest rates on hold on Wednesday. Additionally, market participants will be closely watching any fresh indications that the major US bank will resume lifting rates next month as anticipated. Traders also require the timing of any moves next year.
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.