Eyes on USA big economic event’s impact on USD

Philadelphia Federated Index release

The Philadelphia Federal Reserve’s Manufacturing Index is based on the Manufacturer’s Business Outlook Survey of the Third Federal Reserve Board. Participants received various measurements of activity at the factory (employment, working hours, new and unfulfilled orders, deliveries, stocks, delivery times, prices paid,) as the overall direction of change in business activities. Price) will be reported. An index above 0 indicates growth in the factory sector, and an index below 0 indicates contraction.

Why is it important?

This report is based on interviews with about 250 manufacturers in the Federal Reserve Bank of Philadelphia. You will be asked to evaluate the level of your current Terms of Service. Emotional changes can be an early sign of future economic activity, as companies respond quickly to market conditions. Last time, the Philadelphia Federated Manufacturing Index was worse than expected. As a result, the USD / CAD fell 130 points just 30 minutes after its release.

Important Speeches of Fed’s Members

Mary Daly has been President of the Federal Reserve Bank of San Francisco since October 1, 2018.
Randal Keith Quarles is a member and vice-chair for supervision of the Federal Reserve Board of Governors since October 2017.
Patrick T. Harker is an eleventh president and chief executive officer of the Third District Federal Reserve Bank, at Philadelphia. In 2016, he serves as an alternate voting member of the Federal Open Market Committee.

Initial Jobless Claims data release

The first application for unemployment allowance measures the number of people who first applied for unemployment insurance in the past week. This is the latest US economic data, but the market impact varies from week to week. Higher than the Forecast is generally negative (bearish) against the US dollar, while lower than the forecast is generally supportive (up) against the US dollar.

USD Market reactions

The US dollar fell below the 16-month high in early Asian trading on Thursday after falling overnight against the pound and the yen as traders wondered if the recent surge continued to weaken.

The pound sterling was $ 1.3491, a weekly high against the dollar, which rose 0.5% on Wednesday after the UK’s October inflation pressures put pressure on the Bank of England.

At 114.18 yen against the Japanese currency, the dollar is still seeing a four-and-a-half-year high of 114.97 on Wednesday, and the euro is trading at $ 1.1316, as the market is pushing the euro zone 16 It has been around the low price for the first time in a month. Central bank rate hike queue.

Strong US retail sales earlier this week contributed to the recent rise in the dollar, last week after strong US inflationary pressures upheld market bets that the Federal Reserve should increase rates in the middle of next year Started. The dollar index, which measures currencies against a basket of 6 rivals, rose from 93.872 on November 9th, the day before inflation data, to 96.226 on Wednesday, the highest level since mid-July 2020 and recently. Then it was 95.798.

“The Fed’s market expectations are beginning to be particularly limited, suggesting that the dollar’s tailwind is limited by this factor.”

“Furthermore, most of the worst slowdown in China’s economic activity is behind us. The outlook for economic growth could support the euro, but Covid and energy import costs may not be as much of an issue last winter. “