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.
Currency market on December 9
Welcome to the new week! The Asian trading session demonstrated slow action today. The main attention of traders is paid to the news concerning the US-China developments ahead of the US tariffs deadline scheduled on December 15. Let’s wait for further updates for that matter and check the key levels for the pairs.
The British pound continues its rally
GBP/USD has been trading at the highest levels since May. The bull’s optimism was boosted by the extension of the Conservative Party’s lead in the most recent UK election poll. GBP/USD has been knocking the resistance at 1.3170 on H4. If this level is broken, the next key level will lie at 1.3197 and 1.3220. From the downside, the support levels will be placed at 1.3125 and 1.31.
NZD/USD is near the 50-week MA
Last week was very bullish for NZD/USD, as the pair has risen to its July highs. On the daily chart, the kiwi broke the 200-day MA on Friday. Now we can see that the pair is facing a correction. On H4, the pair has slid lower to the 0.6540 level. We can see, that the price is trading within the ascending trading channel, that is why traders may open positions on the pullbacks from its lower border. The RSI oscillator is looking down, and MACD formed a lower high, which are bearish signals. In case of a breakout of 0.6540, bears need to pay attention to the 0.6520 level. From the upside, the retest of the 0.6574 level will be attractive for bulls.
Post-NFP action of USD/CAD
The Canadian dollar weakened against the USD on Friday after a greater-than-expected American job data. That is why it is not a surprise that the pair has started to consolidate today after the increased Friday’s volatility. On H4, the pair has been trading right below the crossover of 50- and 100- period MAs. The key levels for bulls lie at 1.3262 and 1.3282. The downward momentum is limited by the 1.3250 and 1.3235 levels.
Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
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.