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.
Canadian dollar goes down
On Tuesday, the Canadian dollar inched down versus its American rival due to the fact that an uncertain outlook for global trade compensated the lift from the highest crude prices for three months.
Another round of negotiations between China and America to tackle their trade conflict will be held in Washington on Tuesday.
Besides this, a confidential US Commerce Department report sent over the weekend to American leader was anticipated to clear the way for him to threaten levies of up to 25% on imported cars as well as car parts by simply labeling the imports as a national security threat.
By the way, Canada would be generally spared from car levies under the fresh US-Canada-Mexico Agreement on trade.
However, Canada is facing an account deficit now and it’s a key commodity producer, including crude, therefore its economy could be affected if the global flow of capital or trade speeds down.
American crude futures went up to their highest value since November 20, 2018, heading north by 0.40% being worth $55.81 a barrel, backed by lower supplies.
As a matter of fact, the Canadian dollar inched down by 0.2% concluding the trading session at 1.3271 versus the evergreen buck.
On Monday, the Canadian dollar was nearly intact, when Canada's stock as well as bond markets were unavailable due to the Family Day holiday. The previous week, the Canadian dollar went up by 0.3%.
Last Friday data from the US Commodity Futures Trading Commission as well as Reuters calculations revealed that traders reduced their bearish bets on Canada’s major currency.
Net short positions had inched down to 56,096 contracts as of January 22 from 59,524 in the previous week.
Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
Last week was super intense! Geopolitical turbulence made the Russian ruble the most volatile currency. Gold rose and fell by more than 8000 points each time.
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.