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 slumps to 4-month minimum
On Thursday, the evergreen buck slumped to an almost four-month minimum versus its counterparts because market participants bet on an everlasting rebound in emerging-market currencies in the face of improve market sentiment in developing economies.
Tracking the evergreen buck’s purchasing power versus its primary competitors the USD index slumped by 0.59% being worth 93.56.
The US currency lost ground versus emerging-market currencies, including the Turkish lira, Argentinian peso and South African rand because traders bet the worst might happen to developing countries.
Weakness in the evergreen buck was further exacerbated by a firmer common currency and sterling notwithstanding little sign that European chiefs had warmed up to the British Prime Minister Theresa May's Chequers offer that sets out regulations, which will govern Britain’s future relationship with the European block after Brexit.
As a matter of fact, EU President Donald Tusk told that the May's suggestions are worthless, although May was still defiant, accusing EU chiefs of using negotiating tactics.
The currency GBP/USD ascended by 0.78% coming up with an outcome of $1.3247 on stronger retail sales data. The currency pair EUR/USD ascended by 0.75% showing $1.1760.
American economic data didn’t do much to back the US currency because the wobble in the housing market resumed, while a major manufacturing report beat estimates.
On Thursday, the Philadelphia Fed told its manufacturing index managed to ascend to an outcome of 22.9 versus September’s outcome of 11.9.
The Commerce Department disclosed existing home sales didn’t change in August from July, to a seasonally-updated annual rate of about 534 million units. Market experts were hoping for a 0.3% jump to 5.35 million houses.
In addition to this, the currency pair USD/CAD managed to dive by 0.12% coming up with an outcome of C$1.2905. As for USD/JPY, this pair added by 0.18% hitting Y112.49.
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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.