The US NFP report will come out on January 8 at 15:30 MT time.
Trump dislikes recent American interest rate lifts
On Thursday, American leader Donald Trump unveiled that he generally disliked the Fed’s decision to have interest rates lifted, telling that he was concerned about their probable impact on the American economy as well as American competitiveness.
He told that the Fed tends to lift rates each time the US economy goes up, but he doesn’t like this approach. Nevertheless, he allows them to do what they find to be an ideal solution in this situation.
US leader stressed that he was afraid that the key US bank’s rate lifts might put his country at a sort of disadvantage, while the BOJ and the ECB keep their monetary policy intact.
It wasn’t the first time US leader broke up with a long-standing practice of American presidents staying away from commenting on the major US bank’s policy as well as the value of the greenback, a custom he dared to dismiss.
Then, he told that he fully respects the major bank’s independence and he’s not going to interfere with its decisions.
The USD index cut its revenues after Trump's remarks, while revenues on American Treasury securities reached session minimums. American equities briefly pared dives after news of his remarks.
The main American financial institution has lifted interest rates five times since Donald Trump took office last year, extending the campaign it started in 2015.
In June, the Federal Reserve had borrowing costs lifted in June. On Wednesday, Fed Chair Jerome Powell reiterated his oft-stated opinion that rates are going to resume soaring gradually. By the way, not so long ago Donald Trump dubbed Powell “a good guy.”
The vast majority of Fed policymakers consider the American job market to be close to their full strength. Meanwhile, inflation has recently ascended to the major bank’s 2% objective.
FOMC Meeting Minutes will be released on January 6 at 21:00 MT time.
USD: all attention to Manufacturing PMI Instruments to trade: EUR/USD, USD/JPY, USD/CHF US ISM Manufacturing PMI will be out on January 4 at 17:00 MT time…
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.