Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
EUR/USD and GBP/USD slide
On Friday, the evergreen buck managed to gain in Asia, with the common currency and the British pound tumbling on worries over Brexit. Additionally, the markets looked for signs Donald Trump might soon point to the next Fed chief.
The currency pair USD/JPY hit 113.26, adding 0.64%, AUD/USD showed 0.7838, declining 0.52%. Besides this, EUR/USD went down 0.34% being worth 1.1812, GBP/USD relieved 0.36% trading at 1.3112.
As for the US dollar index, traditionally gauging the American currency’s strength against a trade-weighted basket of six rivals, it leapt 0.35% trading at 93.34.
As reports suggest, UK Prime Minister Theresa May is actually foundering in negotiations with EU leaders as well as her own party in shaping Britain’s exit from the EU, although she was backed by German Chancellor Angela Merkel.
Overnight, the evergreen buck sank abruptly, contributing to earlier losses, reacting to a sag in bond yields after a report hinted that Fed Governor Jerome Powell is actually leading the race to become next Fed Chair after Janet Yellen.
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.