U.S. traders might be on a holiday today, but that doesn’t mean lack of movement for the dollar! Here are potential catalysts you need to know about.
Manufacturing and services PMIs (Jan. 24, 2:45 pm GMT)
We won’t get see action until the middle of the week when Markit prints Uncle Sam’s manufacturing and services PMIs for the month of January.
Recall that the manufacturing index hit a 13-month low, while services business activity dropped to an 11-month low in December.
Analysts see the manufacturing PMI coming in at 53.5 in January, which is a bit higher than the 53.8 reading we saw last month. Meanwhile, the services PMI is expected to dip from 54.4 to 54.2 for the month.
With not a lot of top-tier reports due for release, traders might pay closer attention to lower-tier data from Uncle Sam.
Durable goods orders (Jan. 25, 1:30 pm GMT)
For newbies out there, know that durable goods orders mostly refer to manufacturers putting their orders for machineries that they plan to use for a long time. Higher orders can be interpreted as more confidence in the foreseeable future.
This week market geeks expect to see a 1.8% increase in headline durable goods orders, better than the 4.3% dip we saw in November.
The core figure, which excludes volatile items such as aircraft, is expected to gain another 0.2% in December after printing a 0.4% growth in November.
Significant hits or misses can affect the dollar’s intraday price action, so make sure you’re around during the release!
Trade and government-related updates
Can you believe we’re already in our fourth week of partial government shutdown?
There’s no (realistic) end in sight for the shutdown just yet, but the administration is calling back more federal workers to work with promises of back-pay. That’s something, I guess? Meanwhile, market players are counting the costs of the latest shutdown and no one is happy with the numbers.
On a brighter note, traders are optimistic ahead of the meeting between Chinese Vice Premier Liu He and U.S. trade representative Robert Lighthizer starting January 30.
If last week’s headlines are any clues, then we might see some concrete progress by the end of the meeting. In the meantime, some traders might get a pip or two trading trade-related rumors that might pop up in the next couple of days.
Missed last week’s price action? Read USD’s price recap for Jan. 14 – 18!