You are here: Home > articles > Forex > Weekend Review: Trade Rhetoric and the US Economy Remains in Spotlight
Weekend Review: Trade Rhetoric and the US Economy Remains in Spotlight
August 6, 2018 1:41 pmVideo
Latest News
- Technical Analysis – Netflix stock moves within narrow range ahead of earnings April 18, 2024
- Technical Analysis – GBPUSD tries to recoup some losses April 18, 2024
- USD/JPY in crisis April 18, 2024
- EUR/USD: trading plan for US session on April 18. EUR gets stuck at 1.0686 April 18, 2024
- Fed to keep policy tight for longer than markets view April 18, 2024
- Technical Analysis – BTCUSD drops to 6-week low as halving looms April 18, 2024
- Midweek Technical Look – EURUSD, US 500, WTI April 18, 2024
- Technical Analysis – AUDJPY pulls back but stays in uptrend April 18, 2024
- Forex forecast 04/18/2024: EUR/USD, USD/JPY, Oil and Bitcoin from Sebastian Seliga April 18, 2024
- Video market update for April 18, 2024 April 18, 2024
- Technical Analysis – WTI oil futures exit sideways move to the downside April 18, 2024
- Market Comment – US dollar on the back foot as nervousness lingers in equity markets April 18, 2024
- Hot forecast for EUR/USD on April 18, 2024 April 18, 2024
- EUR/USD and GBP/USD: Technical analysis on April 18 April 18, 2024
- Trading plan for GBP/USD on April 18. Simple tips for beginners April 18, 2024
- Trading plan for EUR/USD on April 18. Simple tips for beginners April 18, 2024
- The Fed and global instability: a double blow to American markets April 18, 2024
- Forecast for EUR/USD on April 18, 2024 April 18, 2024
- Forecast for GBP/USD on April 18, 2024 April 18, 2024
- Forecast for AUD/USD on April 18, 2024 April 18, 2024
On Friday, the Bureau of Labour Statistics (BLS) released the jobs report for the month of July. The numbers were good, but they were lower than what traders were expecting. According to the report, the economy added more than 157K jobs in July while the numbers for June were revised higher to 248K. The unemployment rate moved lower to 3.9%, which was in line with the expectations. This was after the rate jumped to 4.0% in May after falling to 3.8%. These numbers show that the US economy is strong and adding jobs. On average, the economy has added almost 200K jobs per month this year. However, the challenge has been on wage growth which has remained subdued when inflation is factored in. After the numbers were released, the dollar continued moving higher.
Another important data that came out was the ISM Non-Manufacturing PMI numbers for the month of July. The number measures the activities of the purchasing managers in the non-manufacturing industry. A higher number shows that the industry is doing well. The PMI released on Friday was at 55.7, which was lower than the expected 58.6. It was the lowest it has been since December last year and is an indication of the biting challenges of the current trade conflict.
On Friday, Trump’s National Economic Advisor, Larry Kudlow was interviewed on Bloomberg TV where he doubled down on the current trade conflict. The advisor said that the US – under the Trump administration – was unlikely to back down on tariffs. This came after China announced that it will retaliate against the US with tariffs on goods worth more than $60 billion. On Sunday, the Us president sent a tweet praising the tariffs and the fact that the Chinese economy appears to have been greatly affected by the tariffs. This week, the issue of trade will be monitored closely by traders around the world.
Already, China has moved to support its currency from further deterioration. On Friday, the PBOC announced that it would impose fresh laws on currency reserves. The new guidelines will limit the traders’ speculation that the yuan will keep on sliding. Under the new guidelines, banks buying and selling currency forwards denominated in US dollars for customers will be asked to deposit 20% of their sales at the PBOC. This guideline will go into effect on Tuesday and is aimed at preventing the macro financial risks and is intended to keep the yuan stable. Broadly, the PBOC wants a weaker yuan, but the current pace of weakness has not been good for the country.
During the weekend, Wall Street Journal (WSJ) revealed that the cryptocurrencies industry was experiencing extreme manipulation. This is a situation where people in Telegram groups push positive news on ICOs and cryptocurrencies launches. After pushing for positive stories, the participants buy the assets and dump them when the price rises. The new story is expected to increase the attention among the regulators on the cryptocurrencies. This is because in other markets – such as stocks – the pump and dump strategies are usually illegal.
The post Weekend Review: Trade Rhetoric and the US Economy Remains in Spotlight appeared first on Forex.Info.
Related Posts: