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.
Monday started with volatility
Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine. The event involves the key economies of the world, so naturally, it influences the market.
Oil is once again rising. XBR/USD opened with a gap up and is near $100. The conflict will likely keep boosting commodity prices.
The US dollar is perceived as a safe haven in the current situation. That’s why EUR/USD and GBP/USD may remain under pressure. The Eurozone’s economy relies heavily on Russian energy, so traders are worried that it may be hurt. Support for EUR/USD is in the 1.1120/00 area. Resistance is located at 1.1230.
The US dollar index also opened with a big bullish gap and is trading at the highest levels since 2020. The US currency failed to overcome the 97.50/97.75 on Thursday and Friday. Notice that the return below 97.00 may lead to a correction. The most important thing now is how the Federal Reserve, the US central bank, reacts to the news. Will the events affect its planned series of interest-rate hikes starting March? The markets now think that the Fed may be less aggressive and may raise rates by just 6 times in 2022.
Gold is a traditional safe haven. We can see that the price of the yellow metal is volatile. After testing highs at $1928, XAU/USD subsided. The key support is around $1900.
The United States will publish the Initial Jobless Claims on Thursday, December 30, at 15:30 GMT+2 (MetaTrader time).
The United States will publish the ISM Non-Manufacturing PMI on Thursday, January 6, at 17:00 GMT+2 (MetaTrader time).
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.