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 mostly dives ahead of Fed minutes
On Thursday, the evergreen buck turned out to be softer across the board due to the fact market participants were waiting for the minutes of the Fed’s last policy gathering in the afternoon and also looked ahead to June jobs report on Friday. Trade war fears affected market sentiment too.
News that America had rolled out zero duties on car imports as well as exports between the EU and the US drove equities as well as other assets, which are considered to be risky. It enabled the greenback to restore ground versus its Japanese counterpart, normally considered to be a safe-have asset. On the contrary, the news had the euro lifted.
The evergreen buck held on to a small advance against Japan’s currency, although stood weaker against most major counterparts after Automatic Data Processing Inc. informed that in June employers managed to generate up to 177,000 private-sector jobs. Additionally, the Labor Department told that first-time jobless claims reached a six-week maximum, although layoffs are still near a multi-decade minimum.
Moreover, market participants have started paying more attention to wage reports. It’s because they look for signs of acceleration of pay lifts, which could potentially feed inflation and also convince the Federal Reserve to have rates increased more aggressively than expected.
While the deal hasn’t been uncovered yet, both sides are eager to avoid a full-scale trade conflict, which could affect the global economic revival.
In general, trading is supposed to remain muted due to the fact some American investors extend the midweek Fourth of July break. On Wednesday, American markets were unavailable due to Independence Day.
The USD index slumped 0.5% hitting 94.229.
As for the common currency, the currency pair EUR/USD was seen at $1.1712 in contrast with the previous outcome of $1.1657.
The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
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…