Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Greenback soars as Fed leadership rumors send up American yields
On Tuesday, the evergreen buck ascended versus its counterparts, underpinned by a soar in Treasury yields reacting to a report that Donald Trump was appreciating a policy hawk as the next head of the major US financial institution.
Treasury yields rebounded from two-week minimum and rallied after Monday’s report that Donald Trump was generally favoring Stanford economist John Taylor, considered as more hawkish compared to current Chair Janet Yellen, to become the head of the Fed.
On Thursday, Donald Trump is expected to meet Yellen as part of his search for a fresh nominee for her position, as a source already familiar with plans for the gathering revealed.
The US dollar index tacked on 0.05% versus a basket of six key currencies hitting 93.365 having soared 0.25% overnight.
On Friday, the index had stuck to a 17-day minimum of 92.749 in the wake of dismal American inflation data.
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.