Things to watch out for on Friday, January 6:
The US dollar rose early on Thursday, supported by echoes of a hawkish Fed stance. The dollar gained momentum before the opening of Wall Street, after the publication of the figures of American jobs.
The US ADP report showed layoffs fell to 43,651 in December from 76,835 the previous month. In addition, the ADP Job Changes survey showed that the private sector created 235,000 new positions in the same month, much better than expected. Finally, the initial requests for unemployment benefits fell to 204,000 in the last week of December. These encouraging numbers point to a strong December ahead We report non-farm payrolls.which will be published this Friday. In addition, the euro zone will publish new data on inflation. The Harmonized Index of Consumer Prices (HICP) for December is expected to have increased at an annual rate of 97%.
The president of the Kansas City Federal Reserve Bank Chair Esther George said high inflation continues to necessitate Fed intervention, while noting that the central bank will hold rates until 2024, in line with the FOMC’s hawkish stance. Also, St. Louis Fed President Bullard said inflation will likely subside more slowly than markets anticipate, reinforcing the idea of continued aggressive Federal Reserve monetary policy.
The head of the French central bank, Francois Villeroy, a memberof European Central Bank, indicated that the ECB should aspire to reach the terminal rate in summer.
The EUR/USD pair fell to a fresh weekly low of 1.0514, picking up a few points before closing. GBP/USD finally gave in to dollar demand and fell towards 1.1900. The USD/JPY pair extended its advance and is trading around 133.30.
Commodity-linked currencies were among the most volatile, posting significant losses against the dollar. The AUD/USD is trading around 0.6760, while the USD/CAD is around 1.3570.
ANDGold stood at $1,832 troy ounce, and buyers continued to take advantage of the dips. Crude Oil prices consolidate near weekly lows. The WTI operates at $73.60 a barrel.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
