Weekly Outlook 10th-14th of July, 2017


Weekly Outlook 10th – 14thof July 2017

Maximusfx.com Weekly Outlook – The US dollar steadied against a list of major currency pairs on last Friday, upon economic news release data over created jobs as central bank, Federal Reserve supported an idea of hiking the rate for the third time in the same year. According to economists, 179,000 new jobs were expected in the US economy however it is far more boosted than expected figures, with 222,000 jobs last month.  

The rate of unemployment in May hit the 16-year low of 4.3 % but last month there was a slight rise to 4.4% as more people looked for a chance of obtaining a job in the labor market.

At the first phase, US dollar went down against the Japanese Yen currency pair due to the concerns over the inflation insinuations of the weak salary progress released data, upon recovering among optimistic expectations over the robust headline figure.

Aggressive indications from rapid growth in jobs reconfirmed traders that Federal Reserve will be able to raise the rates again this year.

Accordingly, the Federal Reserve raised rates at its June summit and stick to its predictions for further rate hike this year, nevertheless submissive inflation outlook has led to dilemma over if officials will be able to stay strong at its projected shrinking route.  

US dollar against Japanese Yen went to a low of 113.11 before recovering to 113.90 and meanwhile the Euro currency pair experienced lower against resulting jobs report sliding 0.21% to 1.1398.

It is also necessary to mention as one of the key major currency pairs, sterling dropped to 0.61% against the dollar, meanwhile Canadian dollar declined dramatically as USD/CAD went down 0.79% on Friday over the concerns of a rate hike by the country`s central bank this week.

Investors in the financial market turn their attention to a greater chance of a Fed Chair Janet Yellen speech on monetary policy where Federal Reserve creates more clues on forthcoming illustration of further rate hikes and retail sales report.

In the meantime, recent economic illustrations show that the Bank of Canada summit and UK jobs report will be under close attention.

Here is the weekly outlook in the financial market by Maximusfx.com categorized as a list that could cause major volatility across currencies   

10th of July, Monday

China is to report data on producer and consumer price inflation

Germany is to report on its trade balance data.

11th of July, Tuesday

Australia is to announce private industry report on business confidence.

The Bank of England is to announce at an event in Scotland by Deputy Governor Ben Broadbent

Canada is to give statement on housing starts

The US, Fed Governor is to give speech at an occasion in New York

12th of July, Wednesday

The UK is to report on employment data monthly basis

The Bank of Canada is to release a data on interest rate and monetary policy decision.

The FED is to announce reports on monetary policy meeting

13th of July, Thursday

China is to announce data on the trade balance

The US is to publish data on jobless claims and producer prices

The US Fed Chair Janet Yellen is to give speech on the monetary policy

The US Chicago Fed President is to speech in Idaho.

14th of July, Friday

The US is to report on inflation, retail sales, industrial creation and consumer confidence.

Dallas Fed President is to give a speech in Mexico City.


Prepared by Maximusfx Senior Analyst – Z. Nuriddinov.