The past week witnessed many important forex news, as the US dollar ended Friday’s trading with gains against many other major currencies, following the positive data on the US monthly jobs in the non-farm sector for the month of June, which witnessed an increase in the number of jobs added. It would raise expectations of raising interest rates for the third time in a row. The US dollar index rose by 0.21% to trade at 95.78 points.
The US Department of Labor said last Friday that the number of jobs added during the month of June amounted to about 222 thousand, exceeding expectations that showed 179,000 jobs, and unemployment rates rose to 4.4%, after hitting a 16-year low in May at 4.3%.
The US dollar fell against the Japanese yen on mounting concerns over weak inflation data coupled with weak wage growth, but rising US job growth may be a strong driver to drive interest rate hikes for the third time in a row this year.
It is noteworthy that the Federal Reserve raised interest rates for the second time in a row during its meeting, which was held in the middle of last month. It also indicated to raise interest rates for the third time, but investors are skeptical about the bank's ability to raise interest rates due to the decline in inflation rates.
The US dollar fell against the Japanese yen to trade at the level of 113.11 and then rose to close at the level of 113.90, the euro fell against the US dollar by about 0.21% to trade at the level of 1.1398, and the pound sterling fell against the US dollar by about 0.61% to trade at the level of 1.2890.
While the US dollar fell against its Canadian counterpart by about 0.79% to trade at the level of 1.2874, to record the Canadian dollar, its highest level in ten months against the US dollar, after the release of strong data on Canadian jobs that exceeded expectations, which increases the chances of raising Canadian interest rates during this week.
Investors are scheduled to focus this week on Federal Reserve Chair Janet Yellen's semi-annual testimony to the US Congress regarding the future of monetary policy.
On the data front, the US economy is expected to release important data on inflation and retail sales on Friday.
In Britain, the monthly data for jobs in the non-farm sector will be announced for the month of June, and the Central Bank of Canada will meet during this week to issue its monetary policy decision.
Here is a look at the most important forex news this week:
Monday 9th July
The Chinese economy is expected to announce important data on inflation rates, which are represented in the consumer and producer price index, and in the euro area, Germany will release its report on the trade balance.
Tuesday 11th July
Australia is expected to announce data for the private sector on business confidence, in Canada, data for the housing sector, which is housing construction, will be announced, and in the United States, Reserve Bank Governor “Lyle Brainard” will speak at an event in New York.
Wednesday 12th July
The President of the United States Reserve Bank, Janet Yellen, is scheduled to give her semi-annual testimony before the US Congress, which will include the future of monetary policy.
In Canada, the central bank will announce its monetary policy decision and a press conference will follow afterwards.
In Britain, the British economy will release its monthly jobs data for the month of June.
Thursday 13th July
The United States will publish its data on inflation rates, which are represented in producer prices in addition to weekly jobless claims.
The Chinese economy will announce its data on the trade balance, while in the United States, the President of the Federal Reserve Bank of Chicago, Charles Evans, will speak in Idaho.
Friday 14th July
The US economy will release a batch of economic data that includes inflation rates, retail sales and industrial production.
Dallas Reserve Bank President Robert Kaplan is expected to speak at an event in Mexico City.
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