The Euro recorded high profits against its leading contender in the money market on Thursday as the European Central Bank’s President, Lagarde Christine, did not make comments about increasing interest rates after the Ban’s meeting. The Euro is, however, keeping a low profile in the early trading hours of Friday while traders expect January’s Non-farm Payroll statistics data. Before the American Jobs report arrives, retail sales for December will be spotlighted in the docket list of the European economy.
The Canadian unemployment rate report expected later in the day may have a huge effect on the Canadian dollar’s market value.
Last month, the Non-farm Payroll was expected to increase by up to 150,000 after the woeful increase to 199,000 in December. Market actors will likewise keep a focus on wage inflation readings. It was presented to be the change in the whole earnings on an hourly average. The dollar index on its part lost almost 0.7% during Thursday’s trading and maintained itself at 95.00.
Non-farm Payroll Preview
The European Central Bank did not touch its policy features after its February monetary policy meeting, as many had anticipated. When the bank’s president, Lagarde, was questioned about the possibility of interest rate increases to curb inflation, she did not rule out the possibility of it in the middle of the year, and it aided the Euro strength. Lagarde added that the Eurozone’s inflation might increase and linger further.
Currency Pairs
EUR/USD price chart. Source: TradingView
The EUR/USD trading pair went up over 100pbs in their Thursday outing, and it got to its highest point since the middle of January at almost 1.1450.
On the same day, the English apex bank, the Bank of England, stated it had increased its rates by 25bps to reach 0.5%. The policy report showed that up to four MPC members voted to have a 50bps rate increase and the first market reactions gave the pound some strength.
At the press brief, The Bank of England Governor Andrew Bailey gave very conservative positions on the economy, and he didn’t let the pound continue on its bullish path.
The GBP/USD pair ended the day with little daily profit, but it remained in a negative position under 1.3600, going toward today’s session.
The CAD/USD pair, on the other side, continued trading in a stiff position under 1.2700. Canada’s unemployment rate was predicted to increase to 6.2% last month from its initial 5.9% position in the previous month of December.
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