The reaffirmed optimism
that the Federal Reserve will be raising interest rates at some point
this year following another strong US Non-Farm Payroll led to the USD
rallying throughout the remainder of trading on Friday. The
strengthening USD demand also spelled bad news for Gold bulls with the
metal being punished and declining by $40 to $1228, its lowest valuation
since the shock from the Swiss National Bank (SNB) last month. The
concerns that were beginning to emerge regarding US interest rates
expectations being pushed back beyond the second half of the year have
basically been eased following the employment report, with this meaning
appetite towards the USD amongst traders is returning. Strengthening USD
demand wasn’t only restricted to Gold coming under punishment, with the
USDJPY extending to a near-one month high at 119.215.
However, the pair has already pulled back to 118.725 at the time of writing following trade date from China overnight rekindling concerns over economic momentum slowing down. On an annualised basis, imports to China declined by a whopping 19.9% with reduced domestic momentum continuing to be seen as the main catalyst behind a slowdown in overall economic growth. The forecasts for the import data was a 3% decline, so the figure being unexpectedly announced six times worse than expectations is likely to trigger renewed pressure on the People’s Bank of China (PBoC) to implement further economic stimulus measures beyond the reserve ratio requirement cut late last week.
Read more at Click here / www.trade4x.net
However, the pair has already pulled back to 118.725 at the time of writing following trade date from China overnight rekindling concerns over economic momentum slowing down. On an annualised basis, imports to China declined by a whopping 19.9% with reduced domestic momentum continuing to be seen as the main catalyst behind a slowdown in overall economic growth. The forecasts for the import data was a 3% decline, so the figure being unexpectedly announced six times worse than expectations is likely to trigger renewed pressure on the People’s Bank of China (PBoC) to implement further economic stimulus measures beyond the reserve ratio requirement cut late last week.
Read more at Click here / www.trade4x.net
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