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 rallies as investors wait for news on China trade negotiations
On Monday, in Asia, the evergreen buck soared versus most other currencies due to the fact that market participants are waiting for further news on China trade negotiations.
Tracking the purchasing potential of the US currency against a number of its main peers the USD index jumped by up to 0.1%.
The previous week the USD index managed to rally by 1.2% on fears about a weakening global economy as well as soaring uncertainties surrounding the US-China trade conflict. What’s more, it appeared to be the currency’s most impressive weekly ascend since May last year.
Progress in China-US trade negotiations will probably become one of the key drivers of the financial markets this week because high-level statesmen gather in Beijing for another round of talks bursting out on Monday after the last meeting between the two sides resulted in no deal.
The two leading countries are struggling to come to a compromise before the 90-day truce between the trading partners expires on March 1. American leader has threatened to ramp up levies on Chinese goods if the deadline ends up without a deal.
This week, market participants are expected to receive an update on American inflation.
Consumer prices report is anticipated to show up on Wednesday. As for producer prices as well as December retail sales figures, they will be uncovered on Thursday.
Besides this, the currency pair USD/CNY rallied by 0.5%.
The Shanghai Composite along with the Shenzhen Component headed north having returned from a week-long Lunar New Year holiday.
On Thursday, China is expected to reveal its latest trade figures. The day after China will uncover its data on inflation.
The currency pairs AUD/USD and NZD/USD tacked on by 0.2%.
This week, the Reserve Bank of New Zealand will uncover its benchmark interest rate.
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.