The head of the Federal Reserve Jerome Powell will testify on the Semiannual Monetary Policy Report on Tuesday and Wednesday
Swiss franc reports greatest weekly ascend for 4 months
On Friday, safe-haven currencies, including the Swiss franc and the Japanese yen were set for decent profits versus the evergreen buck because traders cut their trading positions in risky assets following a volatile week and soaring worries about US-China trade clashes.
The Swiss franc found itself on track for its greatest weekly jump for nearly four months, adding 1.5% this week in thin year-end session, which has impacted risk appetite.
While the evergreen buck has generally held up quite well versus its counterparts for the last two weeks notwithstanding dwindling hopes for further interest rate lifts from the Fed in 2019. Friday's session saw market participants consolidating their trading positions.
As some financial analysts pointed out, it looks like a classic risk aversion trade in the foreign exchange market.
The Japanese yen managed to ascend by 0.7% coming up with an outcome of 110.23 versus the evergreen buck, while Switzerland’s currency strengthened by a similar margin.
A gauge of the purchasing potential of the US dollar versus its primary counterparts the USD index headed south by about 0.3% ending up with 96.22, having lose 0.5% overnight.
The broad environment appears to be more tentative for risk taking and the evergreen buck seems to be struggling due to volatile American equities, as some economists explained.
In addition to this, dismal economic data weighed too. As a matter of fact, Japan’s industrial output shrank last month partially reversing profits recorded in the previous month, pointing to headwinds for the world’s economy.
Aside from that, data also revealed consumer confidence at its weakest for more than three years in America, in addition to an unexpected sink in industrial gains in China. These are stark reminders for market participants of the deteriorating global surge outlook.
The United States will publish the non-farm employment change, also known as non-farm payrolls (NFP) at 15:30 MT time on February 7.
The level of non-manufacturing PMI for the United States by the Institute of Supply Management will be published at 17:00 MT time on February 5.
The Federal Open Market Committee will publish its meeting minutes on February 19, at 21:00 MT time.
Will coronavirus continue keeping the markets in fear? What releases should we wait for? Find out in the news!
Tesla stock drops in premarket trades on Thursday. Why? See the article (it's short) and use it to your advantage.