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 slumps on worries of American government shutdown
On Friday, the US currency dived versus other key currencies, amid concerns of a probable government shutdown on Saturday.
Market sentiment on the US dollar was quite vulnerable because American lawmakers were struggling to come to a compromise as for a federal budget deal on Thursday.
The evergreen buck has also been suppressed by worries that the global economic revival is going to outpace American surge and also help other key financial institutions, including the ECB to start unwinding loose monetary policy at a faster tempo.
Gauging the greenback’s value versus a trade-weighted basket of six crucial currencies, the US dollar index slumped 0.13% hitting at 90.19.
The common currency ascended, with EUR/USD adding 0.15% reaching 1.2256, GBP/USD stood still at 1.3900.
The Japanese yen and the Swiss franc managed to grow, with USD/JPY sliding 0.25% to 110.82 and USD/CHF losing 0.18% being worth 0.9570.
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.