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 goes down, as trade fears flare up
On Monday, the evergreen buck declined versus its counterparts on worries of an escalation in the US-China trade conflict, while a stronger UK currency and euro also put pressure on market sentiment.
Tracking the greenback’s purchasing potential versus its main rivals the USD index went down by about 0.46% being worth 94.07.
American leader was generally anticipated to announce another 10% duties on $200 billion in China’s products, although some told that the administration decision to decrease levies had tame worries of a full-fledged trade conflict.
The fresh 10% duties are below an original reading of 25% imposed by the presidential administration earlier. Another round of duties shows up a week ahead of another round of trade negotiations between American and China. The Asian country pledged to come up with countermeasures if American proceeds with its initiative to impose levies.
The currency pair AUD/JPY managed to ascend by up to 0.36% being worth 80.45. At the same time USD/JPY dipped by about 0.07% trading at Y111.97.
Australia’s economy relies mostly on exporting raw materials, especially to China that accounts for nearly a third of Australian exports annually.
Market participants are still edge in the face of further trade clashes after Trump promised further levies on trade partners who are unable to make fair deals.
A stronger UK currency also kept the evergreen buck in the red because market participants appreciated reports of upbeat remarks on Brexit from the European Council.
The currency pair GBP/USD jumped by up to 0.60% trading at $1.3149.
The currency pair EUR/USD added by 0.59% showing $1.1691 in the face of in-line consumer inflation data as well as optimism Italy is going to deliver a budget within the EU guidelines.
The currency pair USD/CAD went down by 0.08%.
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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.