Home Business News Forex majors await key economic data

Forex majors await key economic data

20th Feb 24 10:33 am

The US dollar was slightly higher today after experiencing four negative sessions and low trading volumes on Monday due to a market holiday in the US.

Markets are anticipating tomorrow’s FOMC (Federal Open Market Committee) minutes for further insights into the Federal Reserve’s expected rate cut cycle.

Last week’s inflation data prompted markets to expect the Fed to maintain higher interest rates for a longer time. Additionally, markets are awaiting this week’s PMI data for a clearer picture of the US economy’s health, which has demonstrated considerable resilience over time.

The Euro has remained subdued against the dollar with the market adopting a cautious stance ahead of key economic data releases this week. Particular attention could be paid to European PMI data, which will offer insights into the business landscape of a region currently experiencing economic risks.

Other data points that traders could monitor include the German GDP growth figures as well as the Eurozone CPI. The latter could fuel speculations about a potential early rate cut by the ECB.

In China, a larger-than-expected reduction in the five-year loan prime rate, a benchmark mortgage reference rate, could lend some support to the Yuan.

The latter remained stable to a certain extent against a stronger dollar. However, the impact of this rate cut may be short-lived as investors remain wary of the issues facing the property sector.

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