In the world of forex trading, keeping an eye on the news is crucial. It’s like having a map in a complicated maze. Forex news helps traders understand what’s happening in the global economy. Every economic report, government decision, or world event can affect how money moves around the world.
According to Daily Forex, here are a few insights and potential trends to keep an eye on in the forex market.
Market Caution Amidst Rising Tensions
Last week, the market stayed cautious due to a few reasons. People expected US interest rates to stay high for longer than they thought before. Also, the conflict in the Middle East between Israel and Gaza made investors worried because it could get much worse suddenly. Because of this, many investors preferred safe options like the US Dollar and Gold. This careful approach is likely to continue into the new week, especially until Wednesday when important US economic data, including the non-farm payrolls forecast, will be released. These releases might change how the market behaves.
Market Shake-Up: Surprises and Shifts in Key Economic Data
Last week, there was notable activity in significant data releases. The highlight was the US Advance GDP data, revealing a stronger economic growth rate than anticipated (4.9% annualized growth compared to the expected 4.5%), raising discussions about a potentially more aggressive stance from the Fed. The US Core PCE Price Index, viewed as a leading indicator for inflation, showed an anticipated monthly increase of 0.3%. The European Central Bank and the Bank of Canada maintained their main refinancing rates. Additionally, Australian CPI (inflation) data surpassed expectations, indicating an annualized rate of 5.6% compared to the anticipated 5.3%.
Last Week’s Data Releases
- UK Claimant Count Change – The number of people seeking unemployment benefits in the UK increased more than anticipated, signaling challenges for the struggling UK economy.
- US Unemployment Claims – The number of individuals filing for unemployment benefits in the US remained in line with predictions, indicating stability in the job market.
- US, German, UK, French PMI Flash Manufacturing & Services Data – Mostly exceeded expectations slightly, suggesting positive economic momentum in these countries.
- US Revised UoM Consumer Sentiment – The revised consumer sentiment in the US was slightly better than anticipated, reflecting a slightly improved outlook among consumers.
- German ifo Business Climate – The business climate in Germany was a bit better than expected, indicating a more favorable environment for businesses in the country.
- Speech by Governor of RBA – The speech delivered by the Governor of the Reserve Bank of Australia did not contain any significant information or noteworthy points.
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.