Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Japanese yen soars on tensions in Korean peninsula
On Wednesday, the evergreen buck weakened versus the Japanese yen on worries about growing tensions between America and North Korea while the Canadian dollar was firm after the nation's key bank chief supported an interest rate lift.
The US dollar lost 0.3% during early trade, fetching 112.95 yen and drifting away from Monday's 1-1/2-month peak of 113.48.
The Japanese yen tends to be bought back following global uncertainty as Japanese investors might dare to repatriate their foreign investment notwithstanding Japan’s proximity to North Korea.
On Wednesday, Pyongyang announced it had successfully tested a newly developed intercontinental ballistic missile, capable of carrying a large and heavy nuclear warhead, thus triggering an immediate call by Washington for global action to hold the isolated regime accountable for its ongoing pursuit of nuclear weapons.
As for the Canadian dollar, it held firm enough, showing C$1.2934 per dollar, having reached a 10-month peak of C$1.2912 to the greenback on Tuesday.
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.