Top 5 Things to Know Before You Start Trading
This Monday the USD continues seeing support following Friday’s NFP report, safe havens JPY and Gold are lower, and we look ahead to Fed Chair Janet Yellen’s Speech later in the week.
1 – Yellen Speech Ahead in the Week
This Monday will be quiet in terms of data releases, however, markets look ahead in the week for Federal Reserve Chair Janet Yellen’s Speech on Thursday and the Bank of Canada (BOC) policy meeting on Wednesday.
2 – USD Stronger Following Friday’s NFP Report
The USD was strong on Monday, after a bigger-than-expected increase in U.S. jobs suggested the Federal Reserve would stick with its tightening plans for the rest of this year. Non-farm payrolls (NFP) were stronger than expected at 222,000 nonfarm job additions and the past two months were revised up 47,ooo. The unemployment rate edged up to 4.4%.
3 – USD and Euro React to Last Week’s Data Releases
the US Dollar ended as the second strongest currency last week, after solid ISM indices and a better than expected nonfarm payrolls number. Meanwhile, the euro was the third strongest currency as markets perceived the European Central Bank (ECB) monetary policy meeting accounts as a hawkish one.
4 – JPY and GBP Lower
The Japanese Yen (JPY) tumbled across the board to $114.23 as central bank expectations pushed global bond yields sharply higher. GBP ended as the second weakest currency at 1.2896, after a string of weaker than expected economic data raised doubt on whether the Bank of England (BoE) is really ready for a rate hike.
5 – Gold Extends Losses
Gold edged lower on Monday as the US dollar steadied and Asian equities firmed, following stronger-than-expected U.S. jobs data late last week that reinforced expectations of another interest rate hike in the United States. Gold fell to its lowest since March 15th at $1205.