USD/JPY Likely to Gain Bearish Momentum if Japanese Trade Balance Continues to Gain Traction
USD/JPY Forecast & Technical Analysis Japan – Trade Balance On Tuesday, at GMT 11:50 p.m.,…
EURUSD traded in a narrow range on Monday morning in the European market, in light of the market calm and investors’ preoccupation with the oil and stock markets.
The EURUSD pair settled at the level of $1.1574, and A’ recorded a level of $1.1588, while it recorded the lowest level at $1.1564.
Investors are turning their attention to the oil markets, as WTI is witnessing a significant recovery above $80 a barrel, which supported the stock markets as energy stocks rose strongly.
With the rise in commodity prices, concerns are growing about global inflation rates, which are likely to witness a surge, which will force central banks from their stimulus policy during the next few months, especially in light of the possibility of controlling the Coronavirus.
The US Dollar Index (DXY) was little changed on Monday morning as investors reflected on the latest US Non-Farm Payrolls (NFP) and upcoming inflation data.
On Friday, the United States released relatively weak non-farm payroll numbers, and data revealed that the country’s economy added only 194,000 jobs in September after adding 366,000 jobs in the previous month. Not as strong as expected.
On the positive side, the US unemployment rate fell to 4.8% in September after rising by 5.1% in August. The drop in the unemployment rate may be a sign that many Americans are moving away from the labor force, meanwhile, the participation rate has stabilized at around 61.4%
The US dollar index will also be in the spotlight this week for two main reasons, first, the US will publish the latest inflation figures next Wednesday, the numbers are expected to show the country’s headline CPI rose by 5.3% in September, and the CPI is expected to remain Core, which excludes volatile food and energy prices, was at 4.0%.
US inflation data will provide indications that the US is going through a period of stagflation, stagflation is the period when high unemployment and high inflation coincide.
Second, the dollar index will also react to the latest bank earnings from the US, some of the major companies that will publish their quarterly earnings results this week are Blackrock, JP Morgan, and Morgan Stanley.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
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