NFP Set to Boost Dollar, But Trump Inauguration Risks May Limit Sustained Gains
| Action Insight Daily Report 1-10-25 |
NFP Set to Boost Dollar, But Trump Inauguration Risks May Limit Sustained Gains |
Dollar holds onto its leadership position as markets await the US non-farm payroll report. Investors expect the data to reinforce Fed’s decision to pause rate cuts this month, particularly if the report confirms continued labor market strength. In such a scenario, rising US Treasury yields could further bolster the greenback. However, any post-NFP rally might be short-lived, given the looming inauguration of President-elect Donald Trump on January 20. Trade policy rumors have already spurred market volatility, with conflicting reports about sector-specific tariffs and the possible use of emergency powers. Traders may be quick to take profits after NFP-driven moves, wary of sudden developments in Washington. For the week, Canadian Dollar remains the top performer, consolidating gains against the second-ranked Dollar. Euro occupies third place, while Sterling languishes at the bottom, pressured by concerns over UK fiscal stability. Swiss Franc and Yen are next weakest, as Euro and Australian Dollar sit at middle positions...... |
GBP/USD Daily Outlook Daily Pivots: (S1) 1.2240; (P) 1.2306; (R1) 1.2375; More... There is no clear sign of bottoming yet in GBP/USD and intraday bias remains on the downside. Sustained trading below 1.2256 fibonacci level will carry larger bearish implications. On the upside, break of 1.2376 will turn intraday bias neutral first. Further break of 1.2486 support turned resistance should confirm short term bottoming. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Overall Household Spending Y/Y Nov | -0.40% | -0.80% | -1.30% | | 05:00 | JPY | Leading Economic Index Nov P | 107 | 107.2 | 109.1 | | 06:45 | CHF | Unemployment Rate Dec | 2.60% | 2.60% | 2.60% | | 07:45 | EUR | France Consumer Spending M/M Nov | 0.10% | -0.40% | | 07:45 | EUR | France Industrial Output M/M Nov | 0.10% | -0.10% | | 13:30 | USD | Nonfarm Payrolls Dec | 150K | 227K | | 13:30 | USD | Unemployment Rate Dec | 4.20% | 4.20% | | 13:30 | USD | Average Hourly Earnings M/M Dec | 0.30% | 0.40% | | 13:30 | CAD | Building Permits M/M Nov | 1.30% | -3.10% | | 13:30 | CAD | Net Change in Employment Dec | 24.9K | 50.5K | | 13:30 | CAD | Unemployment Rate Dec | 6.90% | 6.80% | | 15:00 | USD | Michigan Consumer Sentiment Jan P | 74.5 | 74 |
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