Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Greenback stands still as Fed minutes awaited
On Wednesday, the US currency was intact versus a basket of the other key currencies after a holiday in America, as traders waited for the minutes of the Fed’s latest gathering later in the day.
The US dollar index, assessing the greenback’s value versus a trade-weighted basket of six crucial currencies, showed 95.96.
The US dollar soared versus the Japanese yen, with USD/JPY adding 0.19% and hitting 113.49, having dropped to an overnight minimum of 112.83.
The Japanese yen remained underpinned overnight amid surging geopolitical tension a day after North Korea launched an intercontinental ballistic missile, reportedly capable of carrying a large nuclear warhead.
The greenback managed to regain ground as financial markets moved on following a brief bout of risk aversion.
The Fed was expected to issue minutes from its June policy gathering later on Wednesday. Market participants are waiting for fresh indications on the future path of American interest rates ahead of Friday’s major jobs report.
The common currency pushed higher versus the greenback, with EUR/USD leaping 0.15% and showing 1.1366.
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.