Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Greenback reaches three-month maximum vs. yen on Abe election win
On Monday, the evergreen buck hit a three-month maximum versus the Japanese yen, with market participants betting that an emphatic election win for Japan's ruling party would mean a continuation of the ultra-loose "Abenomics" policy, which have kept suppressing the Japanese yen.
Japanese Prime Minister Shinzo Abe's ruling bloc managed to score a huge victory in the election on Sunday, with his Liberal Democratic Party-led (LDP) coalition grasping a combined 312 seats, thus keeping its two-thirds majority in the lower house.
Abe's win relieved concerns that the economic steps taken under his leadership, such as an expansive asset-purchase program by the BOJ, would be disrupted and also would cease the Japanese yen's depreciation versus the evergreen buck.
The major US currency soared 0.5% reaching 114.10 yen after the election results, which is its strongest outcome since July 11.
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.
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.