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.
ISM manufacturing PMI is in focus
Traders await the release of ISM manufacturing PMI at 17:00 MT time.
The ISM manufacturing PMI stands for the purchasing managers' index by ISM. This indicator is calculated based on the survey of about 400 purchasing managers, which asks respondents to rate the level of business conditions.
If the indicator is above 50, it shows the expansion of an industry. On the contrary, the index below 50 indicates a slowdown.
The previous data
Last time manufacturing PMI came out at the lower-than-expected level of 47.2 (vs. the forecast of 49). It weakened the USD.
Now we anticipate manufacturing PMI to reach 48.5. Higher figures will push the USD up. In case of an alternative scenario, the USD will weaken.
Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
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.