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.
Euro goes up
On Thursday, the common currency rebounded from 2-1/2 month minimum because currencies heavily affected by recent US dollar buying jumped, with the strengthening mood for risk-taking this month.
Market experts told a flood of end-of-month US dollar purchasing on Wednesday had stopped with the beginning of November.
Along with expectations that China would increase its fiscal stimulus, it spurred the common currency and provoked substantial moves up in the Australian as well as New Zealand dollars, not to mention the Swedish and Norwegian crowns as well as a clutch of emerging market currencies.
A more than 1% rally in the UK pound on expectation for an EU-UK Brexit pact for financial services also contributed to the greenback’s woes, thus leaving it on track for its greatest one-day tumble for three weeks.
The common currency managed to rally to $1.1389, drifting away from a recent minimum of $1.1302, which had followed dismal euro zone data as well as fears as for the Italian budget.
Estimating the evergreen buck’s purchasing power against a pack of its primary peers the USD index went down by 0.5% hitting 96.642, drifting away from a 16-month maximum of 97.2 recorded on Wednesday.
As for the Australian dollar, it gained 1% ending up with $0.7146, backed by data disclosing a firm soar in Australia’s trade surplus.
Aside from that, the New Zealand dollar surged by up to 1.4%, while the Norwegian and Swedish crowns ascended too.
The Japanese yen soared a bit hitting 112.90. Eventually, on Wednesday, the Japanese currency slumped to a three-week minimum of 113.38 after the Bank of Japan uncovered its intention to maintain its extremely loose monetary policy for some time.
The offshore Chinese Yuan that had dived to a 22-month minimum this week, regained about 0.5% ending up with 6.9456.
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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.