It’s been an eventful week across the foreign exchange market, one which we can say has a clear victor – the US dollar. It’s continued to impose its prowess on currency markets even in the face of a dovish Federal Reserve, who remain neutral on interest rates and are currently expanding its balance sheet. The greenback enters Friday’s trading session trading in the $1.29 and $1.09 handle against the pound and euro, respectively. A testament to its resilience.
Today is all about the latest read on the US labour market. Non-farm payrolls will be released at 1330 and should ensure FX markets remain volatile heading into the close of the week. Expectations are fairly high for January’s report. The headline figure is set to show an increase of 160,000 jobs while the unemployment level is expected to remain at 3.5%. Average hourly earnings are due to rise 3% on a year/year basis.
Elsewhere, there’ll be a number of regional eurozone releases ranging from retail sales to trade balance numbers. In addition, many will be keeping an ear out for developments on the coronavirus front with another weekend approaching which will no doubt produce some market-moving headlines.
Have a superb weekend.
Written by Viv Savani. 8:28am, February 7th 2020
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8:51am, March 3rd 2020
Risk-on Start To The Week – Focus On Central Bank Stimulus