This is what you need to know to operate today Thursday, July 17:
After Wednesday’s volatile action, the US dollar (USD) is strengthened against its rivals early on Thursday. In the second half of the day, the US economic calendar will include the weekly data of initial unemployment subsidy and the June retail sales report. Later in the American session, several responsible for the monetary policy of the Federal Reserve (FED) will pronounce speeches.
US dollar price this week
The lower table shows the percentage of the US dollar change (USD) compared to the main currencies this week. American dollar was the strongest currency against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.67% | 0.80% | 1.01% | 0.31% | 1.53% | 1.47% | 0.81% | |
| EUR | -0.67% | 0.10% | 0.34% | -0.38% | 0.82% | 0.78% | 0.12% | |
| GBP | -0.80% | -0.10% | 0.18% | -0.47% | 0.73% | 0.68% | 0.17% | |
| JPY | -1.01% | -0.34% | -0.18% | -0.59% | 0.50% | 0.49% | -0.17% | |
| CAD | -0.31% | 0.38% | 0.47% | 0.59% | 1.21% | 1.16% | 0.51% | |
| Aud | -1.53% | -0.82% | -0.73% | -0.50% | -1.21% | -0.07% | -0.70% | |
| NZD | -1.47% | -0.78% | -0.68% | -0.49% | -1.16% | 0.07% | -0.65% | |
| CHF | -0.81% | -0.12% | -0.17% | 0.17% | -0.51% | 0.70% | 0.65% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
Citing multiple sources with direct knowledge of the matter, CBS News reported Wednesday that the president of the United States (USA), Donald Trump, asked Republican legislators if he should fire the president of the Federal Reserve (FED), Jerome Powell. With the immediate reaction to this headline, the USD was subjected to a new bearish pressure and the USD index closed in red, breaking a four -day streak. Later on the day, Trump said they were very close to a commercial agreement with India and added that an agreement with Europe could also be reached. In the first hour on Thursday, the USD index earns around 0.5% in the day, standing around 98.70, and the futures of stock stock indexes of the United States quote in a mixed manner.
The United Kingdom National Statistics Office (ONS) reported on Thursday’s European morning that the ILO unemployment rate rose to 4.7% in the three months to May, from 4.6%. Other details of the report showed that the change in employment increased by 134,000 in this period, compared to the increase of 89,000 recorded above. After a quiet Asian session, GBP/USD Low slightly after this report and quoted below 1,3400.
EUR/USD It remains down after registering modest profits on Wednesday and fluctuates below 1,1600. Eurostat will publish reviews to the data of the Harmonized Index of June consumer prices later in the session.
Australia data showed that, early in the day, the unemployment rate rose to 4.3% in June from 4.1%. Full -time employment decreased by 38.2K in this period. AUD/USD It is maintained under a strong selling pressure after the disappointing employment report and quotes at its lowest level in three weeks about 0.6460, losing about 1% in the day.
After registering great losses on Wednesday, USD/JPY It reverses its direction and earns more than 0.5% in the day, standing around 148.70 on Thursday. The vice chip of the Japan Cabinet, Kazuhiko Aoki, reiterated that he is concerned about movements in the currency market, including speculative movements.
Gold It benefited from the fall in the yields of the US Treasury bonds and closed in positive territory on Wednesday. The Xau/USD struggles to maintain its position early on Thursday and quotes below $ 3.330.
EMPLOYMENT – FREQUENT QUESTIONS
The conditions of the labor market are a key element to evaluate the health of an economy and, therefore, a key factor for the assessment of currencies. A high level of employment, or a low level of unemployment, has positive implications for consumer spending and, therefore, for economic growth, which drives the value of the local currency. On the other hand, a very adjusted labor market – a situation in which there is a shortage of workers to cover vacancies – can also have implications in inflation levels and, therefore, in monetary policy, since a low labor supply and high demand lead to higher wages.
The rhythm to which salaries grow in an economy is key to political leaders. A high salary growth means that households have more money to spend, which usually translates into increases in consumer goods. Unlike other more volatile inflation sources, such as energy prices, salary growth is considered a key component of the underlying and persistent inflation, since it is unlikely that salary increases will fall apart. Central banks around the world pay close attention to salary growth data when deciding their monetary policy.
The weight that each central bank assigns to the conditions of the labor market depends on its objectives. Some central banks have explicitly related mandates to the labor market beyond controlling inflation levels. The United States Federal Reserve (Fed), for example, has the double mandate to promote maximum employment and stable prices. Meanwhile, the only mandate of the European Central Bank (ECB) is to maintain inflation under control. Even so, and despite the mandates they have, labor market conditions are an important factor for the authorities given its importance as an indicator of the health of the economy and its direct relationship with inflation.
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.
