The US dollar saw some rises on Friday as traders woke up to more predictions that global economic growth was about to slow down.
The dollar, which is often seen as a “safe haven” currency to which forex traders often move in the event of negative data, rose over the course of early trading. The dollar index, a gauge of the dollar’s value compared to six other global currencies, went up by 0.1% to 96.59.
Several global events triggered the move.
The Reserve Bank of Australia once again predicted that growth would actually be slower than previously forecast. As a result, the Australian dollar shifted downwards by 0.3%.
While the euro, whose member nations are also facing a number of growth problems, was down a little in the EUR/USD pair to $1.1338.
This was fuelled by this week’s perceptions that the European Central Bank, or ECB, was planning to keep interest rates at their current low points.
With a new trading week about to get started, it’s worth taking a look down the economic calendar to see which events are worth looking out for.
Japan’s National Foundation Day holiday on Monday will see banks in the country close.
Other economies, such as France, will be much more active. The country’s January consumer price index as it relates to the EU norm will be out at 7.45am GMT.
Month on month, it was last recorded at -0.6%.
British gross domestic product information for December will be out at 9.30am GMT. Month on month, this was last seen at 0.2%.
Preliminary data on unit labour costs from the fourth quarter of the last year will be out at 1.30pm GMT. These are due to show a change from 0.9% to 1.7%.
Looking ahead to Tuesday, December home loans information will be out of the US at 12.30am GMT. It was last recorded at -0.9%.
American manufacturing production statistics for December are due at 9.30am GMT. These are expected to show a significant rise from -0.3% to +0.3%.
The Reserve Bank of New Zealand will make its interest rate decision at 8pm GMT. Analysts are now forecasting that this will remain steady at 1.75%.
On Wednesday, January’s producer price index data will be out of the UK at 9.30am GMT. For outputs, this was last recorded at 2.5% year on year.
The US consumer price index covering the month of January is also expected at 1.30pm GMT. Excluding food and energy, this was last recorded at 2.2% year on year.
Preliminary Japanese gross domestic product data for the fourth quarter of last year is expected at 11.50pm GMT. It was last recorded at -0.6%.
On Thursday, preliminary German gross domestic product data for the fourth quarter of last year is expected at 7am GMT. It is likely that this figure will be scrutinised given the recent perceived risks that Germany was coming close to recession.
Quarter on quarter, it was last recorded at -0.2%. Year on year, it was last recorded at 1.1%.