Forex fundamental analysis and economic calendar review (3 to 6 January)

Forex fundamental analysis

In fundamental analysis the most important economic news and data and its impact on the forex market and other markets, is reviewed and analyzed.
Forex fundamental analysis Forex fundamental analysis
In this fundamental analysis, the most important events, news, and economic data for important currencies and assets of the forex market and their effect on the overall market trend are reviewed from 3rd to 6th January.

A review of last week's important events 

Due to the Christmas holidays of 2023, there weren't important economic data and events published in the economic calendar the past week. But we can pay attention to the last weeks of 2022 in terms of news.

In last year's final weeks, the US dollar's strength increased due to the Federal Reserve's final rate increase to 5.1% and their speech. According to the upcoming data, if it is positive, this power can increase until the Federal Reserve's next meeting in 2023. Due to the US Federal Reserve being very data-driven, it is necessary to pay attention to and observe its economic data. If the data is not good the federal reserve may change its monetary policy.

For the Euro, like the US dollar, the interest rate determination and European Central Bank meeting, as well as the eurozone central bank's head speech, caused this currency to strengthen in Euro-related pairs.

The economic calendar review from January 3 to 6

In 2023's first week and after the Christmas holidays, important data will publish for the US dollar, Euro, and Canadian dollar.

Financial market investors must pay attention because this week is the first working week for banks and financial institutions after the Christmas holidays, and it can lead to good fluctuations and beneficial movements in the financial markets.


This week, important data for the US dollar will publish, and because the data results are significant for the upcoming federal Reserve meeting, it can cause good price movements in the symbols related to the dollar, the forex market, gold, and stocks.

On Wednesday at 03 pm UTC, the manufacturing sector's PMI index (ISM report) for December (previously: 49 | forecast: 48.5) will be published. If the data is released better than the forecasts, it can cause the dollar to strengthen. Also, at the same time, the unoccupied job positions report for November (prev: 10.334M | forecast: 10.000M) will be published. If these data show the US's good economic situation, it can still cause the US dollar to strengthen.
Furthermore, the US Federal Reserve's last monetary meeting report will release at 07 pm, which may not have significant points, because prior to that important points will be presented at the Federal Reserve's last meeting.

On Thursday at 01:15 pm, the private and non-farm employment changes - ADP report for December (prev: 127k | forecast: 150k) will publish. Afterward, as usual, every week at 01:30 pm on Thursday, the US unemployment claims index will be released.

Important NFP data will publish on the first Friday of every month. The US non-farm employment report - NFP (prev: 221k | forecast: 175k) and unemployment rate (prev: 3.7% | forecast: 3.7%) will be released at 01:30 pm. At the time of the news release, most of the focus is on the NFP data, and the dollar-related symbols will perform well. But in general, analysts will review these two data's outcomes along with the average monthly hourly income growth rate index. Note that out of the 7 NFPs published in the past, 6 of them have been better than the forecasts, which shows the US labor market's good condition. If this process continues and goes according to the Federal Reserve plan, it will strengthen the US dollar. However, if the published US labor market situation is not good, analysts will start predicting the possibility of the Federal Reserve policy changes, which will weaken the dollar. On Friday at 03 pm, the non-farm PMI data (ISM report) (prev: 56.5 | forecast: 55) will be published.

Other Currencies

For the Canadian dollar, on Friday at 01:30 pm, important data on changes in employment (prev: 10.1k | forecast: 7.5k) and the unemployment rate for December will be released..

For Euro, the annual and monthly CPI consumer price index will be published at 10:00 am on Friday. According to Mrs. Lagarde, head of the Eurozone Central Bank, if European inflation does not decrease significantly, it can increase the aggressive policies of this bank.


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