Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
GDP Release Scares the Dollar
What will happen?
United States Bureau of Economic Analysis will release Gross Domestic Product (Advance GDP) on April 28, 15:30 GMT+3. It's the broadest measure of economic activity and the primary gauge of the economy's health. Estimates of GDP are released on a monthly and quarterly basis. Quarterly ones tend to have the most impact as they collect the data from more extensive periods.
Why is it important?
GDP reflects a change in the inflation-adjusted value of all goods and services produced by the economy. Thus, bigger-than-expected (or just huge) numbers tell us about economic growth. Last release exceeded expectations by 1.6% (6.9% actual vs 5.3% forecast). After the reading came out, USDCAD gained almost 1000 points till the end of the trading session. Thus, you'll have plenty of time to plan and execute your trades.
How to trade in US GDP release?
The market takes higher-than-expected numbers positively for the USD, while an opposite reading is bearish for the currency.
- If actual numbers beat expectations – the USD will rise.
- Otherwise, fall.
Check the economic calendar
Instruments to trade: EURUSD, USDCAD, USDJPY.
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.
The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
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.