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 in holiday-thin trade
On Wednesday, the evergreen buck stood still in holiday-thinned trade because another round of positive earnings kept pushing traders towards equities as well as other riskier assets.
Assessing the greenback’s purchasing potential versus its major counterparts the USD index stood still, sticking with 96.662.
Trading is anticipated to be thin for the rest of the trading week because American markets will be unavailable on Friday for the Easter holiday.
Previously, China’s data had helped to raise the evergreen buck because the Asian country’s gross domestic product managed to head north by about 6.4% in the first quarter from 2018, dropping a hint that the Chinese economy isn’t decelerating like initially anticipated.
In addition to this, the Chinese Yuan tacked on. The currency pair USD/CNY headed south by about 0.3% trading at $6.6884.
The evergreen buck was nearly intact versus the safe-haven Japanese yen. Eventually, the currency pair USD/JPY decreased by about 0.01% coming up with a reading of 111.97.
As for the UK pound, it slumped due to the fact that the British legislative body is on recess and no progress on Brexit can be achieved before next week. The currency pair GBP/USD decreased by about 0.05% trading at 1.3039.
Aside from that, USD/CAD inched down by 0.2% reaching 1.3329 after a surprise rally in core inflation suggested the Canadian economy could be tighter than the country’s major bank anticipated.
The currency pair EUR/USD rallied by 0.2% showing 1.1294 right after European Central Bank governing council member Ewald Nowotny told that the ECB won’t probably cut its June estimate because it waits for the euro zone economy to finally stabilize in the second half of 2019.
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.