02 Feb US Dollar and Stocks under Pressure as Fed Indicates Interest Rate Hike for March
Tomorrow’s jobs data from the U.S may be creating a wait and see the moment for investors. The Federal Reserve indicated it will likely raise interest rates in March.
Equites Turning in Cautious Results in Europe, Nikkei Adds Solid Values
European equities have opened cautiously this morning as investors try to find their equilibrium after trading in a nervous manner early in the week. While the Nikkei and Topix Indexes in Japan added plenty of value today, the Chinese composites have lost ground. The Yen has declined against the U.S Dollar early and is near the 109.50 level. However, the Euro and Pound have gained versus the U.S Dollar. The Federal Reserve kept their monetary policy in place yesterday, but has set the table for a potential interest rate hike in March.
Investors Likely Bracing for Tomorrow’s Data, U.S Investors Tentative
Economic data from the European Union has proven uninspiring yesterday and today. Manufacturing data will come from the U.S and Canada in the coming hours, but global investors are likely positioning themselves for the Non-Farm Employment Change and Average Hourly Earnings reports from the U.S tomorrow. Wall Street did put in modest gains yesterday, but U.S investors appear rather tentative as they look over quarterly earnings reports and begin a new month of trading.
Gold Facing Early Headwinds, Short Term Range Still Strong
Gold has come under pressure early and is near 1340.00 U.S Dollars an ounce. The precious metal did climb in value yesterday but has met headwinds as traders may be growing cautious ahead of tomorrow’s important economic data from the States. However, Gold remains within the stronger realms of its short-term range.
Canadian & U.S Manufacturing Data Today, Average Hourly Earnings Friday
Manufacturing Purchasing Managers Index results from the U.S will be examined upon their release at 15:00 GMT.
- 13:30 PM GMT U.S, Unemployment Claims
- 14:30 PM GMT Canada, Manufacturing PMI
- 15:00 PM GMT U.S, Manufacturing PMI
Yaron Mazor is a senior analyst at SuperTraderTV .
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This article was originally posted on FX Empire
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