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 keeps to 2-week maximum
On Wednesday, the evergreen buck was intact, keeping to a two-week maximum versus its key rivals, while the Australian dollar went down to its lowest value of 2019 after data disclosed that the Australian economy speeded down to an almost standstill in the fourth quarter.
Tracking the purchasing potential of the evergreen buck versus its major counterparts the USD index accounted for 96.80, having rallied to 96.95 yesterday - its best outcome since February 15.
Firm American economic data underpinned the evergreen buck after reports on Tuesday revealed a rebound in housing as well as services activity that eased fears over a deceleration in the world’s number one economy.
Versus the Japanese yen the greenback tumbled a bit demonstrating a reading of 111.85, having reaching 112.13 yesterday – its best outcome since December 20.
Moreover, the Australian dollar inched down by nearly 0.8% versus its American rival to hit the lowest value since January 4 after data revealed that the Australian economy tacked on by 0.2% in the fourth quarter, which is below an anticipated 0.5% leap.
The dismal data backed recent evidence of decelerating domestic momentum and also encouraged market hopes for a rate cut from Australia’s major financial institution in 2019.
Meanwhile, the common currency was nearly intact versus the evergreen buck showing $1.1301, keeping to two-week minimum against the backdrop of hopes that the EU’s major bank would indicate a delay in lifting rates until 2020 and will have long-term bank loans relaunched soon to withstand an economic deceleration at its meeting on Thursday.
In addition to this, the Canadian dollar traded close to its lowest outcome for almost six weeks because traders are waiting for a policy verdict by the Bank of Canada later in the day.
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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.