Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Greenback eases as traders wait for Fed policy clues
On Wednesday, the evergreen buck eased, with market participants looking past an expected American rate lift later in the day for fresh clues on Fed policy for the rest of 2017.
Against the Japanese yen, the greenback lost 0.1%, hitting 109.98, while the common currency added 0.1%, trading at $1.1217.
The Fed’s expected to announce its monetary policy verdict on Wednesday, at the end of a two-day policy gathering.
The Fed might also provide more clues on how it actually intends to cut its holdings of more than $4 trillion in Treasuries as well as mortgage-backed securities.
Financial experts surveyed by Reuters are assured that the American major bank will raise its benchmark rate to a target range of 1.00-1.25% already this week, although expectations for further rate hikes are fading.
Meanwhile, investors and experts turn to be divided over whether China's major financial institution will follow the Fed and lift its short-term rates or not.
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.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
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.