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 June 25
Key events ahead
US CB consumer confidence – 17:00 MT.
According to the forecasts, the indicator will decline to 132 points. Higher figures will be good for the USD.
Speech by Fed Chair Jerome Powell – 20:00 MT.
· EUR/USD has reached the resistance at 1.1411 on H4 and made a small correction towards the 1.1388 level. If the USD is supported today, the 1.1388 level will be broken and the next support levels will lie at 1.1366 and 1.1344. From the upside, the break of 1.1411 will resume the uptrend for the pair and push it to the next key levels at 1.1440 and 1.1465. RSI and Stochastic oscillators just left the overbought zone.
· USD/JPY tested the support at 106.86 on H4. If the Fed Chair Jerome Powell confirms the dovish tone of the Fed today, the next support for the pair will be placed at 106.67. If it is broken, bears will pull the pair lower to the support at 106.43. From the upside, pay attention to the 107.15, 107.42 and 107.79 levels. Here, RSI has been testing the border of the oversold zone, while stochastic indicator is moving within this zone.
· Gold has been strengthening amid the tensions between the US and Iran and the weak USD. At the moment it is testing the resistance at $1,433. The next key level will lie at $1,473. From the downside, the levels are: $1,423, $1,404 and $1,387. RSI is moving within the overbought zone.
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.