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 rebounds as Kaplan backs Fed pause
On Thursday, the evergreen buck pared earlier profits due to the fact that Dallas Fed President Robert Kaplan backed the major bank’s pause on rate lifts.
Kaplan, generally known as a more hawkish member of the US major financial institution, told that stimulus from tax cuts are receding and the impact of interest rates has yet to affect the American economy.
Estimating the evergreen buck’s purchasing potential versus a number of key currencies the USD index was worth 96.192 in contrast with a previous maximum of 96.433.
The previous week, the major US bank announced an end to its drive to tighten monetary policy because of fears over decelerating economic growth domestically as well as abroad.
The evergreen buck headed south versus Japan’s currency. As a matter of fact, the currency pair USD/JPY inched down by about 0.25% concluding the trading session at 109.67.
In addition to this, the UK currency reversed right after Bank of England Governor Mark Carney told that the financial markets shouldn’t prepare for a no-rate-lift scenario. On Thursday, Britain’s key financial institution left interest rates on hold because tensions over Britain’s plan to depart from the EEuropean bloc has put pressure on businesses as well as and consumer spending. The currency pair GBP/USD tacked on by 0.3% trading at 1.2970.
The common currency dived right after the European Commision slashed economic surge estimates for 2019. The currency pair EUR/USD dipped by 0.03% being worth 1.1356 having slumped to an earlier minimum of 1.1327.
Meanwhile, in Australia, the currency pair AUD/USD regained 0.07% hitting 0.7107. The currency pair NZD/USD went down by 0.15% concluding the trading session at 0.6761. As for the Canadian dollar, it slumped. USD/CAD tacked on by up to 0.4% trading at 1.3262.
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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.