Oil prices are rising while the US government is on the verge of shutting down. How will it affect the market?
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.
Welcome to the first week of October! As usual, at the start of the week, we are looking for valuable insights that will bring us profits in trading. Let’s observe the main events.
Inflation in Europe was released better than the forecast. The preliminary fact was published at 4.3%. What's happening in the markets?
XAUUSD fell below 1900 for the first time since March 2023. Meanwhile, the US dollar index gives a bearish signal. Read the full report to learn more!