Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Greenback is driven by Fed leadership talk
On Wednesday, the evergreen buck approached a three-month maximum versus the Japanese yen, backed by reports that Republican senators appreciated John Taylor as the next Fed Chair.
The Australian dollar turned to be the number one mover among key currencies, sliding 0.8% versus its American rival to a 3-1/2-month minimum after dismal Australian inflation data.
The US currency soared 0.2% versus a basket of key currencies, approaching its highest peaks for three weeks.
A Stanford University economist, Taylor is considered to be a promising nominee, who could put the major US bank on a path of faster interest rate hikes unlike current Fed Chair Janet Yellen does, whose term will be over next February.
The evergreen buck stood still, sticking to 113.87 yen, which is close to Monday's maximum of 114.10 yen that appeared to be the greenback’s highest reading since July 11.
The common currency was intact, keeping to $1.1761.
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.