IronFX Daily Commentary by Charalambos Pissouros | 01/02/2017
February 1, 2017 9:40 am
FOMC decision: Optimistic signals? • The Committee is widely expected to take no action. Focus will be on language of the statement. • Economic data have improved further since the Dec. hike (inflation & wages accelerated). • Thus, we think it’s likely the FOMC appears upbeat overall, thereby setting the stage for a near-term rate hike. • Such signals could reverse some of the dollar’s recent losses.
Trump vs USD strength: Round 2 • Said Germany, China, Japan, take advantage of America by devaluing their currencies. • USD tumbled, maybe on speculation the administration will begin to focus on the dollar’s value. • But given that USD crosses are near key technical barriers, and the possibility of an optimistic Fed, we may see a rebound near-term.
Kiwi tumbles on disappointing employment data • NZD/USD fell overnight after New Zealand’s jobs data for Q4 disappointed. • Despite the tumble though, these data are not soft enough to alter our overall NZD-positive view.
Today’s highlights: • France, Germany & Eurozone: Final manuf. PMIs for Jan. Usually not major market movers. • UK: Manufacturing PMI for Jan. is exp. to decline a bit. GBP-negative. • US: ADP employment change. and ISM manuf. PMI, for Jan. But market focus will be on the Fed.
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FOMC decision: Optimistic signals?
• The Committee is widely expected to take no action. Focus will be on language of the statement.
• Economic data have improved further since the Dec. hike (inflation & wages accelerated).
• Thus, we think it’s likely the FOMC appears upbeat overall, thereby setting the stage for a near-term rate hike.
• Such signals could reverse some of the dollar’s recent losses.
Trump vs USD strength: Round 2
• Said Germany, China, Japan, take advantage of America by devaluing their currencies.
• USD tumbled, maybe on speculation the administration will begin to focus on the dollar’s value.
• But given that USD crosses are near key technical barriers, and the possibility of an optimistic Fed, we may see a rebound near-term.
Kiwi tumbles on disappointing employment data
• NZD/USD fell overnight after New Zealand’s jobs data for Q4 disappointed.
• Despite the tumble though, these data are not soft enough to alter our overall NZD-positive view.
Today’s highlights:
• France, Germany & Eurozone: Final manuf. PMIs for Jan. Usually not major market movers.
• UK: Manufacturing PMI for Jan. is exp. to decline a bit. GBP-negative.
• US: ADP employment change. and ISM manuf. PMI, for Jan. But market focus will be on the Fed.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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