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Last week did not depart much from the previous ones. There were not important market movers; however, one in particular has caused a change...

Last week did not depart much from the previous ones. There were not important market movers; however, one in particular has caused a change in EUR / USD.

The euro-dollar exchange rate emerged from a week of reductions, at least until were published the data on the US labor market of September.

The week was characterized by a great progression of the US dollar, strengthening against other currencies, a factor that has led to a drastic fall in the price of gold, silver and safe haven currencies such as the yen.

In this context, the single currency has held up the impact and it did not go below 1,11 before returning to go up.

Non Farm Payrolls were 156.000, compared to 151.000 in August, a result that was revised later at 167.000. The average of analysts’ forecasts pointed to an increase of 175.000 new jobs but this was not the case.

EUR/USD quotation has risen to 1,12 after testing the 1,110 level, returning several times on the last period paths. Such disappointing data made the greenback close a week in suffering.

The example of the Non Farm Payrolls on Friday showed, however, that it is reasonable to expect any kind of surprise by this market mover, to which the market has become very sensitive, always leaving open a possible reversal to the upside.

The last week has been a week of suffering also for another currency which is not going through a rosy period.

The pound has suffered huge losses during the Asian session on Friday and it has fallen by around 6% against the US dollar to 1,18, a new thirty-year record that is added to that one happened on Tuesday. At the close of the session the pound recovered a bit and stood at 1,24 US dollar.

On Thursday, the pound-dollar exchange rate has traveled around $ 1,26, as traders continued to be concerned about the future of the British economy after the Brexit, following the UK decision to leave the Union European.

A similar collapse of the pound was in 1985. Analysts believe that the situation will not improve and the pound will continue to collapse in the post-Brexit era.

Even the current week will be poor of significant market movers for the Forex market, except for major economic indicators for US and China.

Forex traders will focus once again on the dynamics of the monetary policy of major central banks, first of all, the Federal Reserve.

In addition to the publication of the minutes of the last FOMC meeting, the Fed will be the protagonist of this new week on the currency market due to the numerous interventions of US central bank members, including a public speech of President Janet Yellen.

The market looks at December meeting for a possible rise in interest rates, and on Wednesday night it might be time for new directions.

In terms of macro data on the economic calendar in the US stands out the retail sales index and consumer confidence calculated by the University of Michigan.

There will be also a lot of interest for the health of the second largest economy in the world. China is planning the publication of high impact economic data, including inflation in consumption and production, as well as the performance of the trade balance.

 

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