The US dollar has been skyrocketing for several weeks. Gold and other USD-related assets are under heavy pressure. EUR/USD has plunged 2700 points in the last weeks. Purchasing Managers’ Index (PMI) might add fuel to the fire. This index is based on a monthly survey of purchasing managers across many industries and provides insights about business conditions in the country. Higher than expected data will help the dollar to soar even higher. On the contrary, a low number will trigger a selloff in the greenback and make pairs like EUR/USD and AUD/USD rise.
October 6, 04:00 GMT+3 (EEST) – New Zealand Cash Rate
Some countries (like Turkey) are lowering interest rates and pushing inflation even higher. Others plan to act the opposite way. New Zealand may raise the rate by 0.25 percentage points. Although this outcome is already priced in the NZD pairs, the central bank’s rate statement will contain commentary about the economic conditions that influenced the RBNZ decision. If we get lots of hawkish comments, NZD/*** pairs will soar, and vice versa.
October 8, 15:30 GMT+3 (EEST) – US NFP
The most important and meaningful labor data that shows the overall economic health will be published soon. Average hourly earnings are a leading indicator of consumer inflation. NFP and unemployment rate help us understand consumer spending expressed not in money but in the labor force. These three readings have created a sharp rise in gold in September 2021, propelling the price by 2100 points because the weak figures pull the USD down and push gold up. The recovering of the economy will pressure the gold deeply, and you will have a magnificent opportunity to earn on this volatility. All USD pairs will move vastly too.