PMIs Key to Forex Market as CGT Hike Shakes Wall Street

  • Full PMI Daily Schedule
  • Major currencies remain strong against the US dollar
  • Stock market works on stock market because of stock tax plans

It’s been a week of twists and turns, with big swings yesterday as new plans to increase capital gains taxes emerged. This has given the USD some strength, but other major currencies, such as the EUR, have managed to counter the upward movement. Today we close out the week with a series of important data points to evaluate for the forex market and those who trade in it.

Impressive PMI indices take center stage

With the US PMIs not due until later in the day, traders focused on Eurozone and UK data early in the session. Both figures were positive and strengthened both currencies, although the USD was in higher demand following yesterday’s news of a possible tax increase.

The euro held steady above 1.20 as preliminary PMI data showed that the economic recovery in the region continues to accelerate. The cumulative value for April was 53.7, 0.5 higher than in March. In the UK, the pound weakened but the damage seems to have been limited by the impressive PMI figures. Their cumulative score was 60.0, a significant jump from the previous month.

Simplification of currency transactions

There was initial pressure as currency brokers saw a strong comeback against the dollar yesterday following a sell-off on Wall Street and in the crypto-currency markets. The latter lost more than $200 billion in one day as bitcoin and other currencies fell. Initially, traders also returned to the dollar, although it had positive momentum today as well, followed by a move away from safe-haven currencies.

The pound was hit the hardest of the majors, despite huge retail sales and equally impressive PMI figures. The pair has recouped some losses, but is still trading below 1.39 and many are waiting for the US PMI figures later today. The positive data should reflect some of the positive momentum, just like in Europe today.

Post-Rocky Day Stock Rally

The plan to raise the capital gains tax rate took Wall Street markets by surprise yesterday. They moved quietly along the road and showed little activity in either direction until the news came. This led to a sharp fall in all the major indices and ended the worst day of the month feeling the proposal to increase the CGT rate to 39.6% for high-yielding companies with revenues over $1 million.

It looks like today will bring a glimmer of hope, although the expectation is that the opening will be positive across the board during earnings season and early trading hours. Initial claims for unemployment benefits have also declined further and are now at a low level.

Related Tags:

forex flame sniper trading systemsniper trading strategyforex market scanner free downloadforex king trading systemfx king systemforex sniper indicator,People also search for,Privacy settings,How Search works,forex flame sniper trading system,sniper trading strategy,forex market scanner free download,forex king trading system,fx king system,forex sniper indicator,forex scanner analyzer,fx profit wave system

Get in Touch

Related Articles

Crypto-to-fiat liquidity startup Xanpool raises $27M

A new blockchain-powered startup, Xanpool, has raised $27 million in funding to provide liquidity for digital assets. The company is the first of its...

JPMorgan says inflation concerns, not ETFs, driving Bitcoin price jump

Bitcoin’s price has gone up by more than $1,000 in the past week, with JPMorgan Chase CEO Jamie Dimon attributing the increase to “inflation...

Celsius vs. BlockFi – Beat The Banks With Crypto Lending

Celsius is a peer-to-peer lending platform with no set interest rates, while BlockFi is an institutional grade crypto lender. The two are similar in...

Latest Posts

Crypto-to-fiat liquidity startup Xanpool raises $27M

A new blockchain-powered startup, Xanpool, has raised $27 million in funding to provide liquidity for digital assets. The company is the first of its...

JPMorgan says inflation concerns, not ETFs, driving Bitcoin price jump

Bitcoin’s price has gone up by more than $1,000 in the past week, with JPMorgan Chase CEO Jamie Dimon attributing the increase to “inflation...

Celsius vs. BlockFi – Beat The Banks With Crypto Lending

Celsius is a peer-to-peer lending platform with no set interest rates, while BlockFi is an institutional grade crypto lender. The two are similar in...

Paxful Review 2021: Legit Peer-to-Peer Crypto Marketplace?

Paxful is a peer-to-peer marketplace for bitcoin and other cryptocurrencies. It has been around since 2013, but it has recently made waves with its...

AutoFarm Review 2021 (AUTO) – [Newest Top Contender for DeFi Yield Optimizers?]

AutoFarm is a new, upcoming DeFi yield optimizer that has been garnering some attention. The project has an ICO coming up on the 11th...