Breaking News

Dollar firms waiting a heavy economic week

News Date: 3/4/2017 03:32:08
 

The US dollar index began trading in the first week of April stable above the 100 mark, waiting an economic week with a significant number of key data, starting today with April ISM Manufacturing index, ending Friday with the US jobs report.

At 03:04 GMT, the US Dollar index fell 0.12% to trade at 100.25.

The US dollar ended last week three weeks of decline, making the biggest weekly advance in nearly two months, taking advantage from growth data that showed faster growth than expected.

Investors are waiting for the US jobs report this week. A worse-than-expected reading will have a more negative impact on the US dollar than the positive impact of higher-than-expected reading, due to the strong correlation of US labor market performance with cautious forecasts for interest rates hikes.

The April ISM Manufacturing index will released today, with expectations of 57.2 index from 57.7, adding more positive signals to the strength of the US economic recovery, which supports the Federal Reserve's tendency to tighten monetary policy, A higher-than-expected reading will give the dollar strength at least the ability to settle Ahead of US Jobs report on Friday.

on Friday ,Federal Reserve President  William Dudley gave the US dollar the strength to firm, after saying the bank would begin trimming government bond portfolio this year sooner than market expectations, but at the same time pointed out that there was no rush to raise interest rates , today new comments from Dudley will be released.

USDJPY pair indifferent, ignoring the positive data from Japan that showed improvement on Tankan manufacturing Index (indicating the sentiment of the companies), indicating optimism in the performance of the manufacturing sector benefiting from the weak value of the Japanese yen, which will increase exports next quarter .

The pair is floating around the opening price of 111.32.

Recently we see limited economic data impact on the Japanese Yen. This comes after recent comments by BOJ Governor Kuroda, who emphasized the Ultra- loose monetary policy appropriate  with the current situation in Japan, which makes the chances for the yen to rise almost impossible.

Pound showed limited response for triggering Article 50 ,despite all the expectations surrounding it.

The pound gained 0.05% to trade around 1.2541 against the US dollar.

The April UK Manufacturing PMI will be released today, which is expected to show growth at 55.1 from 54.6. If the reading comes above expectations, this will give the pound strength to continue the recovery.

As it will add more positive signals to the strength of the British economy, which supports the trend to raise benchmark interest rates, especially after the recent vote on the interest rate that showed a split among members to raise interest rates, plus the recent rise in inflation rates above the target levels of the bank at 2 %.

Sponsored by: CloudsIndex.com 

Latest news

The number of global Coronavirus infections is increasing at an unexpected speed, and German Chancellor Angela Merkel said yesterday that the pace of new infections is advancing day after day, and at
11-2020 17 08:37:57

Japanese stock indices closed lower today, due to undermining investor sentiment for fear of a rise in Corona cases, and the Nikkei index fell by 0.53% to 25385.87 points, and over the course of a we
11-2020 13 05:10:43

The US dollar manage this morning, to achieve progress during the trading session, as the « safe currency » rose by 0.04% to indicate 93.073, and the dollar fell against the Japanese yen
11-2020 12 08:11:42

Trump is still trying to raise the curtain on the corruption – as he claims – which was defined by the polling process in the last major US election that was sorted by Democrat Joe Biden,
11-2020 11 08:58:20

Most of the global markets rebounded on Monday, right after the opening of the weekly trading session, after Democrat Joe Biden won the US presidential elections, and both stocks and commodities rebo
11-2020 10 09:23:45

More News

Logs

Advertisements