Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Aussie dives, Kiwi stands still in late trade
On Monday, the Australian dollar sank versus its American rival, while the New Zealand dollar was intact because market participants were still digesting the American government shutdown.
The currency pair AUD/USD slid 0.14% being worth 0.7987.
The US currency initially dropped reacting to Friday’s American government shutdown after Republicans and Democrats didn’t manage to agree on a last-minute deal to finance government operations.
On Sunday, Democratic and Republican leaders of the US Senate held negotiations, hoping to break the impasse.
The evergreen buck has been suppressed in recent trading sessions amid worries that the global economic revival is going to outperform American surge and help other key financial institutions, including the ECB to start unwinding loose monetary policy at a faster tempo.
Besides this, the currency pair NZD/USD stood still, demonstrating a reading of 0.7276.
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.