Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Canadian dollar soars, reacting to hawkish major bank comments
On Tuesday, the Canadian dollar went up to its highest level in almost two months, buoyed by hawkish comments from Canada's major financial institution, while worries regarding UK political uncertainty suppressed the British pound.
At one point, Canada’s currency demonstrated its best outcome since April 17, hitting C$1.3274 per greenback, extending revenues after soaring more than 1% on Monday. The Canadian dollar last traded at C$1.3293, tacking on approximately 0.2% on the day.
On Monday, Bank of Canada Senior Deputy Governor Carolyn Wilkins told that first-quarter surge turned to be impressive enough and the signs that economic growth was extending would lead the major bank to consider whether current low interest rates would still be actual.
The British pound dropped 0.1%, hitting $1.2653, having lost 2.3% two days ago.
Against the Japanese yen, the evergreen buck was intact, keeping to 109.97. As for the common currency, it dropped 0.1%, being worth $1.1193.
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.