The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!
All eyes on USD
US unemployment claims and GDP will be released on August 27 at 15:30 MT time!
Instruments to trade: EUR/USD; USD/JPY; GBP/USD; USD/CAD
The combination of two US significant releases at one time will make the market really volatile! Unemployment claims reveal the amount of people, who filed for jobless benefits during the previous week. The gross domestic product shows an annualized change in the value of all goods and services produced by the economy. This report is delivered every quarter, but in the annualized format: the quarterly change is multiplied by 4. There are 3 types of GDP: advance, preliminary, and final. The advance one is the earliest and thus tends to have the biggest impact. However, this week is not so eventful, that’s why traders will pay closer attention to this report. Notably, the advanced GDP contracted by 32.9% and marked the largest decline ever. Indeed, the coronavirus ruined many business and factories. The recovery will depend on the government’s ability to contain the virus spread.
- The US dollar will surge, if the data comes better than expected.
- Otherwise – drop.
That day has come, guys! The Fed will hold a meeting at 21:00 GMT+3. It can be a highly impactful event. The markets expect the bank to hint about the timing of tapering.
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
Commodities (iron ore, oil) and commodity-linked currencies (AUD, CAD) surged. West Texas Intermediate has reached $75 a barrel, while Brent rose to the highest mark since October 2018.
Although Jerome Powell’s speech sounded hawkish on Wednesday, September 22, markets did not get scared and the main stock indices got bought back…
Turkey’s central bank governor was at a crossroads: to hold interest rates and take a risk to be fired like it was for three governors before him, or to comply with the president, to cut rates, and to risk the market. Let’s find out, how to react to the rate cut.