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 stands still
On Monday, the evergreen buck was still pressured due to the fact that market participants were still cautious right after American leader Donald Trump renewed his criticism of the major US financial institution over the weekend.
Gauging the evergreen buck’s purchasing potential against its primary peers the USD index headed south by nearly 0.1% concluding the trading session at 96.495.
On Friday, US leader dared to blame the major US bank for decelerating surge in the United States and decreasing stock prices because of its tightening monetary policy, informing on Twitter that it the major US bank had done its job perfectly that it actually has not, the Stock Market would have rallied 5,000 hitting 10,000 extra points, while GDP would have tacked on 4% versus a 3% jump.
In fact, trading is anticipated to be speed down this week due to the fact that financial markets are unavailable on Friday for the Easter holiday.
The evergreen buck managed to tack on versus the safe-haven Japanese yen. The currency pair USD/JPY headed north by 0.02% concluding the trading session at 112.00.
Aside from that, the UK pound surged, even as British Prime Minister Theresa May told that the country was making plans for a hard Brexit notwithstanding an October deadline for Britain’s departure from the European bloc. Britain had originally been due to depart from the European bloc on March 29, although the deadline has since been extended several times. The currency pair GBP/USD soared by about 0.2% ending up with 1.3108.
In addition to this, the currency pair USD/CAD went up by nearly 0.5% coming up with a reading of 1.3382. The currency pair EUR/USD rallied by 0.05% hitting 1.1306.
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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.