Strong movements for the US dollar after the US labor market numbers

Australian Reserve the most important events of the week

Stay tuned for the statements of US Federal Reserve members led by Jerome Powell

The Japanese yen gained more than 100 points at the opening

Separate economic data

After the meeting of the three largest central banks in the year (the Federal Reserve – the European Union – England), in addition to the American labor market numbers, issued last week’s events, the financial markets return in a new week and new economic figures that will cast a shadow over the current week’s trading, topped by the first meeting of the Reserve Bank of Australia in the year 2023.

In addition to some separate figures, before we go over them, we will summarize the most important events of the past week.

The US labor market numbers concluded the events of last week, Friday, after the US Bureau of Labor Statistics announced that it added 517 thousand jobs in January, in a manner that surprised the markets.

The US economy added 517 thousand jobs in January, and the dollar rose by more than 0.70% (fayezalajmi-4x.com)

The US Federal Reserve started the most important events of the week after it raised interest rates by 25 basis points on Wednesday, as expected. The dollar fell in the Fed’s test (fayezalajmi-4x.com) On the other hand, the Bank of England raised interest rates by 50 basis points, as expected.

Thursday, the Bank of England raises interest rates by 50 basis points (fayezalajmi-4x.com)

The European Central Bank concluded the meetings of central banks and also raised interest rates by 50 basis points, as expected.

The European Central Bank raises interest by 50 basis points (fayezalajmi-4x.com)

The movements of the US dollar came strong last week, after increases of more than 1%, and the general index of the US dollar tested 102.96 levels, moments after the Federal Reserve meeting. When closing at levels of 102.96 after the US labor market figures, which came as a surprise to the markets.

Unemployment rates fell to 3.4%, at their lowest levels in 54 years, and the addition of jobs from the US economy is the strongest since July of last year.

In January, it was a shock in every sense of the word to the markets and supported the rises of the US dollar strongly, while the slowdown in wages in January contributed to the continuous rise in expectations. Low inflation, which supports the US Federal Reserve’s abandonment of monetary policy tightening.

The movements of the euro and the pound sterling were the strongest during the week, while the US labor market figures on Friday supported the declines of the yen and the Australian, as the euro closed at 1.0795 levels after testing 1.1030 levels on Thursday, while the pound sterling ended the week at 1.2049, down from 1.24 levels, while the aussie closed the week at 0.6923.

What will we watch this week?

Attention is directed during the sessions of this week to many economic data that will have a direct impact on currency movements, as the Reserve Bank of Australia meeting tomorrow, Tuesday, in the Asian session, in addition to Chinese inflation numbers, growth figures from the United Kingdom, and the American consumer confidence index, will lead the events of the current week

. Reserve Bank of Australia

The focus of the markets and traders will be on the meeting of the Reserve Bank of Australia tomorrow, Tuesday, in the Asian session, in its first meeting in the year 2023, to discuss developments in monetary policy and interest levels, as expectations indicate that the bank will raise interest rates by 25 basis points, to reach 3.35%.

Inflation in Australia rose in December to its highest level in 33 years after figures released in the Australian Institute of Statistics (ABS) showed the consumer price index, which measures inflation in Australia, rose by 8.4% year-on-year in the twelve months to December last year, compared to 7.3% in November. To come, exceeding expectations that indicated a rise to 7.6%. On the other hand, the quarterly index rose to 1.9% in the fourth quarter of last year.

Before the recent inflation figures for the month of December, market expectations rose that the Australian Bank may have almost finished tightening monetary policy, especially with the rise in mortgage costs resulting from high interest rates, but the recent inflation hikes changed the view of the Central Bank of Australia, as expectations rose that the bank hints after raising interest.

Tomorrow, Tuesday, he will raise it again at its meeting on the fifth of March, at the same pace, to fight rising inflation.

Statements by members of the US Federal Reserve

During the current week, we will monitor the statements of a number of US Federal Reserve members that are expected to affect the market movements, as Jerome Powell, Chairman of the US Federal Reserve, will make these statements tomorrow, Tuesday, in Washington, while Williams, Cook, Bar, Waller, and Harker are expected to speak on separate days this week.

The statements of the Federal Reserve members are important, given that they will be immediately after the surprising US labor market numbers, to give a better picture to investors about their expectations in the coming period.

The yen gained more than 100 points at the opening

The Japanese yen fell more than 100 points in the opening trading session today, Monday, at 132.30 levels, in an upward direction for the pair, after reports issued early today by the Nikkei newspaper, quoting anonymous sources, showed that the Japanese government and the ruling party had asked the Deputy Governor of the Bank of Japan Masayoshi Assuming the position of Governor of the Bank to succeed Kuroda, whose five-year term will expire on the 8th of next April

.Masayoshi is from the Kuroda camp who is very supportive of easing monetary policy and a key player in formulating the Kuroda asset purchase program in 2013 and supports the idea of keeping interest rates very low, so if the reports are correct, it is expected that investors and markets will return expectations about the exit from the loose monetary policy from the Bank of Japan almost

. Monetary policy is the main driver of the Japanese yen’s trading, and therefore, with high expectations that the new governor will continue the accommodative monetary policy and maintain low interest rates, we may see the marriage target the 150 levels against the US dollar, in which the pair was trading previously.

Separate data that we follow during the week

Today, Monday, in the European session, we will monitor German factory orders and retail sales in the euro zone, while the PMI for Ivey from Canada will be announced in the American session.

Tomorrow, Tuesday, we will follow the meeting of the Central Bank of Australia in the Asian session. Unemployment numbers from Switzerland and the French trade balance top the events of the European session. The US and Canadian trade balance, in addition to statements by US Federal Reserve Chairman Jerome Powell and Bank of Canada Governor McClem, are the most important events of the American session.

On Wednesday, Italy will announce retail sales, while France will announce labor market weaknesses. In the American session, we will follow statements by members of the US Federal Reserve, Williams, Bar and Wheeler, in addition to inventory figures.

On Thursday, we will follow the Bank of England’s monetary policy report in the European session, while we will follow the weekly unemployment claims index from the United States of America in the American session.

Friday, the last session of the week, we will monitor the inflation numbers from China and the monetary policy report from the Australian Bank in the Asian session, as values that the growth figures from the United Kingdom top the events of the European session, and we conclude the markets with the numbers of the Canadian labor market and the American consumer confidence index, and statements by members of the US Federal Reserve Harker and Wheeler.