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 moves up
On Monday, the evergreen buck soared versus a basket of currencies, drifting away from the previous week's 6-1/2-month minimums and also shrugging off news of North Korea's new missile test because investor attention shifted to the Fed’s expected interest rate lift already next month.
The dollar index, tracking the evergreen buck versus a basket of six counterparts, grew 0.1%, hitting 97.502, staying above the previous week's value of 96.797, the lowest outcome since Nov. 9.
On Monday, John Williams, San Francisco Federal Reserve President told in Singapore that medium-term trends in American inflation were still favorable enough, notwithstanding some recent soft consumer price data.
The American economy was at or close to the Fed’s objectives of full employment as well as stable prices, as Williams informed, adding that the Fed was eager to ensure financial markets stayed calm because the major US bank slowly returned its interest-rate policy to what markets consider normal.
The US dollar tacked on moderately to 111.37 yen , holding its ground notwithstanding a cautious backdrop, which normally underpins Japan's perceived safe-haven currency.
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.