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 tumbles vs euro and pound as BoE and ECB open door to hawks
On Thursday, the US dollar kept to one-year minimums versus the common currency and dipped versus the British pound in Asian trade because market participants priced in tighter monetary policy in the EU.
The US dollar index, usually tracking the strength of the American currency versus six main rivals, decreased 0.1%, being worth 95.843, demonstrating its lowest outcomes since October and quite below peaks above 97.0 reached earlier this week.
The British pound contributed to revenues made after BoE Governor Mark Carney told on Wednesday that Britain’s key financial institution probably require lifting interest rates as the UK economy gets closer to working at full capacity.
On Tuesday, ECB Governor Mario Draghi sparked the common currency’s leap, when he dropped a hint that the EU’s major bank could potentially trim its stimulus in 2017.
The euro gained 0.3%, trading at $1.1410. The British pound surged 0.2%, being worth $1.2955.
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…