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 to day’s minimums ahead of Fed gathering
On Tuesday, the evergreen buck went down to the lowest value of the day versus its key rivals ahead of a highly-anticipated two-day Fed gathering starting later on Tuesday. The key US bank is anticipated to have rates lifted at this meeting for the third time in 2018.
Estimating the greenback’s purchasing power against its main rivals the USD index slumped by 0.27% being worth 93.61.
The key US bank was to start its policy gathering later in the day, and with a quarter point rate lift highly anticipated by investors at the conclusion of the gathering on Wednesday.
Tuesday’s data disclosed that in September confidence among American customers rallied to its highest value for 18 years, underpinned by a firm economy as well as sturdy surge.
Trade worries were still to the fore after China and America slapped new levies on each other’s imports on Monday, thus driving a trade clash that markets worry could impact global surge.
The evergreen buck was intact versus the Japanese yen. The currency pair USD/JPY showed an outcome of 112.87.
The common currency rallied. The currency pair EUR/USD jumped by up to 0.5% hitting 1.1789, having reached a three-and-a-half month maximum of 1.1814 earlier.
The common currency was still backed after European Central Bank Governor Mario Draghi told that the pickup in inflation in the EU was vigorous enough and added that he was assured that acceleration in wage surge would remain.
However, ECB governor also repeated his promise to keep euro zone interest rates intact at their current record minimums through the summer of 2019.
The UK pound also managed to gain. The currency pair GBP/USD tacked on by about 0.32% being worth 1.3161, although uncertainty over Brexit kept clouding the outlook.
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!
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.