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.
Common currency is intact
On Monday, key currencies were nearly intact in Europe. However, a positive tone in stock markets in the wake of Friday’s American GDP report assisted the Australian and New Zealand dollars to rally a bit versus the evergreen buck.
Experts haven’t noticed an evident impact on the common currency from the general election in Spain, with the center-left PSOE party as a winner. Pedro Sanchez, PSOE leader can’t form a majority cabinet with Podemos, the more radical of the country’s two left-wing parties that makes it less probable that Spain is going to have budgets with excessive deficits drafted and further destabilize the fiscal consensus in the EU.
The common currency was worth $1.1161, a bit above the two-year minimum that it sank to the previous week. In fact, it was backed by profit-taking in oil against the backdrop of Twitter remarks from Donald Trump at the weekend. American leader told that talked to Saudi Arabia as well as others about soaring crude flow. Apparently, lower crude prices normally benefit the European economy, as an oil importer. On the other hand, such petrocurrencies as the Russian ruble face an adverse effect. From the previous week’s maximum, it has slumped by nearly 1.5%.
Estimating the evergreen buck’s purchasing power against its main counterparts the USD index hit 97.708, nearly 0.3% below the fresh maximum for this year recorded on Tuesday.
The common currency might react later to EU monetary data. Additionally, private-sector credit surge is anticipated to have stuck with 3.3% in March, intact from February.
The UK pound has started the trading week in wait-and-see mode in anticipation of a speech by BoE chief Mark Carney.
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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.
Every week we expect many interesting events that can shake the market.