In the fast-paced and interconnected world of forex trading, staying informed about the latest news and data releases is vital for traders seeking to navigate the markets successfully. News plays a pivotal role in shaping market sentiment, driving price movements, and providing valuable insights into economic trends and policy decisions. The ability to interpret and react to news in real time is a key skill that sets apart successful traders from the rest.
In the first week of July 2023, according to Daily Forex, here are some of the important news and data releases that you can consider highlighting in your weekly trading!
Significant Slowdown in the US Economy
The US economy has experienced a significant slowdown, raising alarm bells among market participants. Last week’s jobs and average earnings data revealed the lowest number of net non-farm payroll jobs created since 2020, although average earnings surpassed expectations. This mixed data triggered a negative response in the market, signaling ongoing worries about US inflation levels. The release of FOMC meeting minutes did not impact the market significantly. Attention now turns to the highly important upcoming US Consumer Price Index (CPI) data. As the week closed, major equity indices mostly declined, despite recent highs, and the US Dollar weakened.
Last Week’s Data Releases
- US JOLTS Job Openings: The US Job Openings and Labor Turnover Survey (JOLTS) data came in slightly lower than expected, aligning with the lower non-farm payrolls (NFP) data. This suggests a cooling in the labor market, indicating a potential slowdown in job creation.
- US Unemployment Rate: As anticipated, the US unemployment rate remained unchanged at 3.6%, indicating stability in the labor market.
- US ISM Services & Manufacturing PMI: The Institute for Supply Management (ISM) Services Purchasing Managers’ Index (PMI) surpassed expectations, indicating stronger growth in the services sector. However, the manufacturing PMI came in lower than expected, signaling a slowdown in manufacturing activity.
- RBA Cash Rate & Rate Statement: The Reserve Bank of Australia (RBA) maintained the cash rate, as expected, opting not to implement a rate hike. This decision had a slight impact on the Australian Dollar.
- Swiss CPI (Inflation): Swiss Consumer Price Index (CPI) inflation increased by only 0.1% on a month-on-month basis, falling short of the expected 0.2% increase. This suggests a lower-than-anticipated inflationary pressure in Switzerland.
- OPEC Meetings: During the OPEC meetings, further production cuts were agreed upon, aiming to balance the global oil supply and support oil prices.
- Canadian Unemployment: The Canadian unemployment rate was expected to rise slightly but ended up increasing more than anticipated, climbing from 5.2% to 5.4%. This indicates a slightly weaker labor market than previously expected in Canada.
Disclaimer
The news presented on Prime Codex is solely those of the analysts quoted. They do not represent the opinions of Prime Codex on whether to buy, sell or hold specific pairs. Traders are advised to conduct their independent research before making an investment decision.
