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 stabilizes notwithstanding weaker-than-anticipated Q4 GDP data
On Friday, the evergreen buck stabilized in Asia even after data revealed a weaker-than-anticipated fourth quarter GDP data.
Estimating the purchasing value of the US dollar versus its primary peers the USD index shot up by about 0.1% reaching 96.773.
The Commerce Department informed on Thursday that American GDP tacked on at a 2.2% annualized rate during the October-December period. Market experts had hoped for a 2.4% leap.
The evergreen buck was little influenced by the publication of the data due to the fact that yesterday’s tumble in the British pound backed the US currency.
The dive in the UK currency occurred after the British legislative body didn’t manage to pass any bills, which were alternatives to Theresa May’s Brexit deal.
May intends to ask British lawmakers to vote on one part of her Brexit proposal, the Withdrawal Agreement, setting out the terms of Britain’s departure from the European bloc for the transition period.
The European bloc told it would only grant a Brexit delay until May 22 on the condition the British lawmakers have the deal approved. If they fail, Brexit is going to be postponed only until April 12.
Yesterday, Theresa May told that she would reside if her proposal is approved.
The currency pair GBP/USD jumped by 0.2% ending up with 1.3068.
Meanwhile, on the China-US trade front, White House economic adviser Larry Kudlow told that the current US presidential administration is ready to resume talks with China to finally come to a compromise. He added that America might lift some of the levies on China’s exports, but not all of them.
The currency pair USD/CNY slumped by 0.2% showing 6.7231.
The currency pair USD/JPY jumped by 0.1% trading at 110.76.
As for AUD/USD and NZD/USD, both pairs rallied by 0.1%.
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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.