The Forex market enters a crucial week as traders brace for key employment data, including the Non-Farm Payrolls (NFP) report expected to show an increase of 195,000 jobs. With pivotal metrics influencing monetary policy decisions, traders must adjust strategies accordingly.
The Forex market is primed for significant movements as crucial economic data is set to release next week. With the RBNZ expected to cut rates and vital inflation reports from the US and Eurozone due, traders must stay alert to the potential impacts on currency valuations.
The forex market heads into a volatile week with key economic data and central bank updates on the horizon. The U.S. dollar remains robust amid inflation concerns, while European currencies feel the pressure of political uncertainty. Upcoming releases such as weekly jobless claims and PMIs will be critical for trader strategies.
analyzes the Forex market’s outlook following the recent US elections and upcoming economic data releases, particularly focusing on the impact of inflation indicators. Understanding these elements helps traders strategize effectively for potential volatility in currency pairs.
Analyzing the Forex market for the week of November 4-10, 2024, we focus on pivotal events impacting high-impact currencies. Key insights include the US Presidential Election’s implications on the USD and central bank decisions affecting the GBP and AUD. Stay tuned for the upcoming economic calendar that promises significant market movement.
The recent economic data for the United States has been disappointing, leading investors to reconsider the necessity of another interest rate increase by the Federal Reserve before the contractionary phase concludes, potentially followed by more rate cuts next year. Consequently, the US dollar has shown signs of weakness in the financial markets.
As it is known, market participants do not only expect interest rates to increase but also to decrease it. But it should be noted that if the stickiness of inflation is high, the Federal Reserve will probably increase the interest rate again, and because the market has predicted a decrease in the interest rate, this issue can put heavy pressure on stocks and indices. be risk-averse. Of course, this analysis is based on the assumption that the US labor market is strong and the unemployment rate is low. If the unemployment rate increases, the Federal Reserve will have to adopt an expansionary policy, and Congress will urgently increase the debt ceiling of the US government.
As it is known, market participants do not only expect interest rates to increase but also to decrease it. But it should be noted that if the stickiness of inflation is high, the Federal Reserve will probably increase the interest rate again, and because the market has predicted a decrease in the interest rate, this issue can put heavy pressure on stocks and indices. be risk-averse. Of course, this analysis is based on the assumption that the US labor market is strong and the unemployment rate is low. If the unemployment rate increases, the Federal Reserve will have to adopt an expansionary policy, and Congress will urgently increase the debt ceiling of the US government.
🇺🇸 For the US dollar, the CPI index for April, due out on Wednesday, will be on everyone’s radar. The core CPI data is expected to change from 5.0% to 5.2% year-on-year, while the core CPI rate is expected to be unchanged at 5.6% year-on-year, indicating that the increase in the cost of factory goods accelerated during the month.
Last week, US manufacturing and service sector PMIs were released in their preliminary assessment of April.
The data showed that the average price of goods and services rose in April from September last year, and the inflation rate has now risen for three consecutive months.
