How to trade the JPY?
Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Will PMIs Trigger Fresh Highs in the USD?
What will happen?
The United States will publish Flash Manufacturing and Services PMIs on Tuesday at 16:45 GMT+2. These indicators represent diffusion indices that are calculated based on surveys of purchasing managers in the above-mentioned industries. If the indices are above 50, they signal an expansion of industries, while an index below 50 demonstrates contraction.
Why is it important?
The Purchasing Managers Indices show how businesses react to current market conditions. As a result, this is the earliest preview into the economy's stability. That is, better data strengthen the currency.
In the picture below, EUR/USD spiked in August after lower-than-expected Flash Manufacturing and Services PMIs.
How to trade on the Flash Services and Manufacturing PMIs?
It’s easy! Just compare the actual data with the forecasts which appear a few days before the report in the economic calendar.
- If the indicators are higher than the forecasts, the USD will rise.
- Otherwise – fall.
Instruments to trade: EUR/USD, USD/JPY, GBP/USD
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Latest news
Market Crash Incoming?
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.
What Currency Will Overperform?
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.
Investor Positivity May Fade After Powell's Speech and CPI Release
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.
