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 backed by US Treasury bonds
On Thursday, the US currency stabilized to a basket of leading currencies, underpinned by a rise in US Treasury bond yields. It’s because investor appetite for risky assets improved, although the continued concern about the Washington-Beijing trade dispute limited the growth of the currency.
The US dollar index dived 0.02%, diving to 89.608 having ascended 0.1% on Wednesday.
The evergreen buck tacked on by 0.17% to yen to 107.41 yen.
Strengthening of the dollar was limited taking into account the growth in yield on 10-year treasury bonds, which gained more than 5 basis points yesterday, demonstrating the maximum one-day revenue since March 2.
The common currency rallied by 0.07% to $1,2381 after a slight ascend the day before.
The Japanese yen didn’t react to the meeting between US President Donald Trump and Japanese Prime Minister Shinzo Abe, who agreed to intensify consultations on trade issues.
The Turkish lira went down versus the dollar after rising more than 2% the day before due to the fact that the country's President Tayyip Erdogan called for early elections in June, which is more than a year earlier than planned.
The Turkish lira dived by 0.21% against the Us dollar hitting 4.02 lira per dollar.
The Canadian dollar dived 0.6% to the US dollar after the comments of the Bank of Canada, which investors found not aggressive enough.
On Wednesday, the regulator told that it will keep lifting the rate, refraining from this decision at the end of the April meeting, but noted that it does not know when it will be required and how aggressive the policy should be tightened to keep inflation.
On Thursday, the Canadian dollar rose 0.07% to C$1.2618, although drifted away from the seven-week maximum of C$1.2528 hit before the regulator's gathering.
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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.