Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Greenback steadies ahead of major bank meetings
On Tuesday, the evergreen buck stood still versus a basket of currencies, with the focus on the Fed’s two-day gathering, while the Canadian dollar managed to grow after Canada’s major financial institution suggested interest rates could leap sooner than anticipated.
The dollar index, normally gauging the US dollar against crucial rivals, hit 97.245, overleaping its seven-month minimum of 96.511 reached the previous week.
As for the Canadian dollar, it showed its best outcome for two months, keeping to C$1.3287 per greenback, extending its profits, having climbed more than 1% on Monday.
The Loonie obtained a lift right after a senior Bank of Canada official dared to raise the prospect that an interest rate lift could emerge sooner than anticipated.
With the major American supposed to lift its interest rates, traders’ focus shift to new hints on the pace of further tightening, its assessment of the US economy and also outlook on inflation.
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.