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.
Currencies wrap: the best, the worst, the most volatile
The week is over and now it is time to underline how successful it was. Below we gathered the best and the worst performers of the week and the most volatile pairs .
Best-performing currency pairs
Among the best performers, we can mention USD/MXN and USD/CNH. While the first pair has managed to gain around 2000 pips in a week recovering from the losses of September 2018, the USD/CNH showed a solid gain of more than 700 pips. Of course, the weakening of the Chinese yuan is strictly connected with the fears surrounding coronavirus in China.
Among major currency pairs, we can name USD/CAD as the strong performer during this week. The pair rose on the weaker oil prices above the 200-week SMA and tested the 100-week SMA at 1.3160. The pair has strengthened by more than 100 pips.
Worst-performing currency pairs
The worst performers, of course, were the pairs with the JPY as a quote currency. This is due the risk-off sentiment, which traders to invest in the safe-haven assets. Here we can mention USD/JPY. The pair went down from 110.07 to 109.27 after the previous two weeks of gains.
Also among the losers we can name AUD/USD and EUR/USD. Both pair have been having tough weeks.
The most volatile currency pairs
The award for the most volatile currency pair goes to USD/ZAR. On the daily chart, the pair could not stick above the 50-day SMA after the test of 200-day SMA at 14.5660 and fell towards the 14.3050 level. However, bulls did not give up their attempts to push the pair higher, as a result the pair has retested 14.47 on Friday.
GBP/USD also showed a mixed performance between the support at 1.3 and the resistance at 1.3175.
What changes will we see during the upcoming week? Let’s wait and see. All you need to do is follow our news and
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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.