Feb 1 – Hawkish FOMC Supports the Buck, Watch 5 Economic Events Today
Arslan Butt • 1 min read
Good morning, traders. As discussed in our Jan 31 – Morning Brief, the Fed (Federal Reserve) kept interest rates on hold during their January meeting. However, they did make the statement hawkish by saying the inflation is likely to rise this year.
The statement was hawkish enough to keep bulls expecting further rate hikes later in the year. Comparatively, the fundamentals side is light today, but let us look at five important events today
Today’s Economic Events
Great Britain Pound – GBP
Manufacturing PMI – The figure is due at 9:30 (GMT) with a minor change in the forecast – 56.5 vs. 56.3 last month
Why do traders care about this data? Because it’s a leading indicator of economic health. The businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.
US Dollar – USD
Unemployment Claims – At 13:30 (GMT), the Department of Labor will release the weekly data on employment claims. This is the nation’s initial economic data. The market impact shifts from week to week and there tends to be more focus on the figures when traders need to analyze recent developments, or when the reading is at extremes.
ISM Manufacturing PMI at 15:00 (GMT) is expected to downbeat the previous data. Last month the US economy reported manufacturing PMI of 59.7 but as per forecast, the figure could drop to 58.7.
Additionally, the Prelim Unit Labor Costs and Prelim Nonfarm Productivity will be monitored but they typically have less to no impact on the market.
Summing up, typically, the market exhibits thin trading volume and volatility ahead of the big day as investors try to save their moves ahead of the US labor market data. Good luck today!