The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
Important events this week will bring us
- American Non-Farm Payrolls (Fri, 14:30 MT (12:30 GMT)) – Most notable event in the monthly economic news. This report on the employment dynamics in USA will push the US dollar up if the actual indicator exceeds the expected 90K; otherwise, US dollar shall be dropping.
- American GDP Growth Rate (Wed, 14:00 MT (12:00 GMT)) – Forecasted as 1.7% against the Q2 figure of 2%, this GDP quarterly indicator pulls USD down if the actual figure proves to be less then expected.
- American Fed Interest Rate Decision (Wed, 20:00 MT (18:00 GMT)) – Analysts predict the rate cut to 1.75% that is supposed to pull the USD down.
- Brazilian Interest Rate Decision (Wed, 19:00 MT (21:00 GMT)) – According to forecasts, the rate will be kept unchanged. However, the mood of the central bank may affect the Brazilian real.
- European GDP Growth Rate (Thu, 12:00 MT (10:00 GMT)) – Quarterly GDP growth rate of the Eurozone is expected to be 0.1%, marking a slight drop from the previous figure and pulling euro down if it is confirmed.
- With EU confirming the extension of Brexit for another 3 months and UK parliament voting for an earlier election today, the British pound is entering another stage of uncertainty and volatility.
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
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.
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.