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.
Market updates on July 17
Key events ahead
- British CPI – 11:30 MT time
- Canadian CPI – 15:30 MT time
- Crude oil inventories – 17:30 MT time.
- Yesterday’s release of retail sales for the US outperformed the expectations (+0.4% vs. +0.1%) and pushed the USD higher against other currencies. The GBP/USD pair suffered the most as political uncertainties keep adding pressure on the British pound. The cable retested its lowest levels since January’s flash crash at 1.2379 on H4. The release of consumer inflation for the UK came in line with the expectations. It helped the GBP to get positive momentum a little bit. If bulls manage to break the resistance at 1.2419, the next key level will lie at 1.2434. The further rise will be limited by the resistance at 1.2477. On the other hand, if the cable continues to fall down, the pair will stick below the 1.2379 level. The next support will be placed at 1.2345.
- USD/MXN has risen on the stronger dollar and the disappointing news on Pemex. The plan to reduce taxes on the company disappointed investors. The first resistance will lie at 19.1430. The next resistance level will be placed at 19.1926 (200-period SMA). On the other hand, if the MXN gets stronger, the fall below the 19.0980 level will be inevitable. The next support will be placed at 19.0406. RSI is about to leave the overbought zone, which may provide a short-term selling opportunity.
- USD/CAD is trading within the downward trading channel at the last November’s lows. The pair is moving to the support at 1.3049. The next support level will be placed at 1.3030-1.3020. From the upside, pay attention to the 1.3077 level. If this level is broken, the next key resistance will lie at 1.3091. Bulls will push the pair as far as the 1.3132 level will be reached. The traders of this pair need to pay attention to the release of Canadian CPI at 15:30 MT and the level of crude oil inventories. Higher figures of CPI and the lower number of oil barrels will bring positive momentum to the CAD.
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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.