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 surges, UK pound dives
On Friday, the evergreen buck managed to inch up versus its primary counterparts. At the same time, Britain’s major currency proceeded with its decline in the face of everlasting Brexit worries.
Tracking the American dollar’s purchasing potential against a number of its major rivals the USD index climbed up by up to 0.40% coming up with an outcome of 93.84.
Besides this, earlier in the week, the world’s number two economy, China told that it’s on the verge of imposing fresh duties on American products worth about $60 billion on September 24. The fresh levies happened to be a response to American ones slapped on Monday - 10% on $200 billion in China’s products, which are scheduled to extend to up to 25% at the end of 2018.
Besides this, the evergreen buck managed to rally versus the safe-haven Japanese yen. The currency pair USD/JPY ascended by 0.11% ending up with 112.60 notwithstanding Japan’s inflation that unexpectedly hit a seven-month maximum.
The UK currency headed south to an intraday minimum after UK Prime Minister Theresa May told that the EU and Britain were at an impasse in Brexit talks, thus generating new worries of a no-deal Brexit. Prime Minister told that negotiations froze after the European bloc rejected Britain’s offers without providing an alternative.
European countries along with the British Parliament are expected to approve any pact before the March 29, which is the official exit date.
The currency pair GBP/USD inched down by 1.43% trading at 1.3071.
The currency pair EUR/USD slumped by 0.29% hitting 1.1742 because of a higher greenback as well as data, which disclosed that the eurozone manufacturing PMI appeared to be lower than anticipated.
The currency pair AUD/USD lost 0.16% reaching 0.7280. As for NZD/USD, this pair added 1.04% trading at 0.6679 following Moody's had the country’s AAA rating reaffirmed.
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.