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.
Greenback extends its losses
On Thursday, the greenback extended its losses versus a group of its opponents due to the fact that a leap in the UK currency resumed on the back of expectations that the EU and Britain are making real progress in Brexit negotiations.
Evaluating the purchasing potential of the key American currency against its primary rivals the USD index headed south by 0.81% trading at 96.12 having leapt by 2.3% in October.
The UK pound built on early profits. The currency pair GBP/USD rallied by 1.46% being worth 1.2950.
The UK currency was backed by reports that the EU and Great Britain are close to an agreement, which will enable British financial services companies to have continued access to EU markets after Brexit.
The UK pound gained an extra boost after the Bank of England told that there’re scenarios where interest rates could be lifted in case of a no-deal Brexit.
The Bank of England left interest rates intact and added that uncertainty over Brexit is still putting pressure on the British economy.
The common currency slumped a bit versus the UK pound. The currency pair EUR/GBP slipped by 0.77% being worth 0.8809.
Versus the evergreen buck, the common currency jumped. The currency pair EUR/USD hit 1.1403, ascending by 0.81%.
The evergreen buck demonstrated minor reaction to American economic reports disclosing that the labor market keeps tightening, although manufacturing activity speeded down in October.
As the Department of Labor informed, applications for initial jobless claims tumbled the previous week, and the total number of people getting benefits appeared to be the lowest for over 45 years.
The Institute of Supply Management revealed that in October its index of national factory activity headed south to 57.7 from September’s reading of 59.8.
The greenback dived versus the Japanese yen. The currency pair USD/JPY declined by 0.24% being worth 112.65.
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.