Forex fundamental analysis

A review of last week's important events 

Last week, there was a lot of news about the US dollar. On Wednesday, Jerome Powell, the US central bank's chairman, mentioned dovish points in his speech and did not mention the hawkish points (interest rate increase). Expressing points such as unwillingness to more contraction and the refusal to answer questions about the interest rate ceiling made traders conclude that the Federal Reserve is probably planning to reduce its aggressive policies and take the Dovish policies forward, so the US dollar weakened in the market, and the dollar-related symbols showed good fluctuations.

At the same time, the European Central Bank also surprised the market. The European Central Bank's head openly followed his policies in the form of dovish and reducing the rate of the interest rate increase, and the euro weakened as a result. With the decrease in the euro's value, traders saw the situation as very suitable for buying dollars in the market, because the USD had become very weak during this period, and the dollar strengthened again in the market. With the increase in the dollar's strength, gold, and the stock market index, gained strength. 

On Friday, the market faced a big surprise with the nonfarm NFP report. The 513.000 jobs number was a very high number that caused the US dollar to gain strength. With this data, the market's viewpoint also changed. It is predicted that the high labor market will probably lead to an inflation rate increase. Therefore, with the inflation rate increase, there is a possibility of continuing aggressive and hawkish policies.

The economic calendar review from February 7 to 10

There are no significant economic reports and data for this week. But in general, the most important data for this week is related to the US dollar and other currencies. We can also pay attention to a few important economic data or reports.

On Tuesday, February 7, at 05:40 pm UTC, Mr. Powell, the US Federal Reserve's chairman, will give a speech. Powell's speech is important because the US NFP data was published very well, and Powell's comments about this report are significant. Considering that last week, Mr. Powell gave a speech, it seems that most of what he said will be repeated.

This week, several members of the FOMC will speak on Wednesday at 02:15 and 03 pm, which may cause fluctuations in the symbols related to the US dollar.

Every Thursday at 1:30 pm, the US Unemployment Claims are published.

On Friday, at 03 pm, the Prelim UoM Inflation Expectations (February) (previously: 62.7 | forecast: 62.9) and the Prelim UoM Consumer Sentiment (February) (prev: 64.9 | fore: 65) will be published.