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.
Evergreen buck inches up on firm services and housing data
On Tuesday, the evergreen buck surged due to the fact that activity in the American service sector managed to pick up.
Assessing the US dollar’s purchasing power against its primary rivals the USD index tacked on by up to 0.29% ending up with an outcome of 96.893.
The evergreen buck managed to ascend right after the Institute of Supply Management revealed that its non-manufacturing purchasing managers’ index or PMI for short went up to 59.7 from January’s result of 56.7. A separate report revealed that new home sales went up to a seven-month maximum in December.
In addition to this, China’s lower surge estimates overshadowed news that China and the United States could formally sign a trade pace on March 27.
On Tuesday, China came up with a statement that it was targeting economic surge of 6.0% to 6.5% this year. The given objectives is less then the 6.6% leap recorded the previous year that was already the lowest result for decades.
In addition to this, the evergreen buck managed to rally versus the safe-haven Japanese yen. The currency pair USD/JPY went up by about 0.2% trading at 111.92.
Aside from that, the UK currency went down due to the fact that Brexit talks resumed. As a matter of fact, the currency pair GBP/USD slipped by 0.5% hitting 1.3118. The common currency went down against the backdrop of hopes that the European Central Bank is on the verge of providing banks with cheaper funding at its next policy gathering on Thursday. As a result, the currency pair EUR/USD dived by 0.34% showing 1.1296.
The currency pair AUD/USD went down by 0.4% hitting 0.7065. NZD/USD headed south by about 0.6% trading at 0.6775. The Canadian dollar slumped. The currency pair USD/CAD rallied by 0.4% showing 1.3354.
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.