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 stays low as trade feud worries loom
On Monday, the evergreen buck started in Asia morning at a minimum because worries of a global trade feud provoked a sell-off notwithstanding the previous week’s short-lived ascend when fresh Fed Chair Powell officially confirmed the tightening policy.
Estimating the greenback’s value versus a group of six crucial currencies, the US dollar index dived 0.02% being worth 89.93. The greenback was staying below the 90 mark on Monday morning.
Donald Trump’s tariff policy on aluminum and steel excited market participants around the globe because the administration emphasized there wouldn’t be any exclusion for any market partner. The evergreen buck has been going down since Trump uncovered the tariff update last Friday.
The currency pair USD/JPY headed south 0.26% showing an outcome of 105.47. It’s because the anti-risk Japanese yen managed to gain ground in the face of worries of a global trade conflict. The currency pair had been fluctuating in red and also hanging around the 105 mark. Bank of Japan’s chief Kuroda pledged to maintain Japan’s monetary policy and also expected to meet the inflation 2% objective by 2020.
The Australian dollar headed south 0.22% versus the evergreen buck, showing a result of 0.7746. Additionally, the sentiment-linked currency was suppressed by China’s mediocre Caixin PMI report. February’s PMI for the private service sector accounted for 54.2 compared to the expected outcome of 54.3.
Aside from that the People’s Bank of China dared to set the fix rate of the national currency versus the evergreen buck at 6.3431 compared to Friday’s rate of 6.3334. The currency pair USD/CNY inched down 0.26% hitting 6.3312.
In China, the National People’s Congress, which opened today is in focus. Premier Li Keqiang told that China is going to keep prudent monetary policy intact, while CPI along with GDP surge are targeted at approximately 3% and 6.5%.
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.
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…