Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
The risk sentiment gets better as Chinese data improves
The Chinese economic indicators have marked a positive start of today’s trading session. While the GDP growth came out in line with the forecast with a 6% increase, the level of industrial production greatly outperformed the anticipated figures, rising by 6.9% (vs. the forecast of 5.4%). Also, industrial production advanced by 5.4%. It may be a good sign about a final de-escalation of the US-China trade tensions.
The market showed an optimistic reaction to the news, resulting in the inflow of capital into the Chinese yuan.
USD/CNH has fallen to the lowest levels since the beginning of July. On the daily chart, the pair is targeting the support at 6.8478.
USD/JPY, on the other hand, is getting positive momentum. The pair has broken higher above the 110 level and now is testing the border of the uptrend.
The phase one trade deal between the US and China has brought the bullish momentum to the markets. However, experts suggest that the tensions are not over yet, mentioning US tariffs on Chinese goods that remain in place. Will we see future challenges for the Chinese yuan ahead?
The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
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.