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.
Retail data may shake the loonie
Canada will publish the headline and core retail sales on January 24 at 15:30 MT time.
Retail indicators show the change in the total value of sales at the retail level. The main difference between the headline and core indicators lies in the fact, that the latter excludes automobile sales due to their volatility. Last time both indicators came out much lower than the projections. While the forecasts were quite optimistic, the actual figures showed a decline. The retail sales fell by 1.2%, and core retail sales - by 0.5%. As a result, the Canadian dollar moved down. Will we see a different outcome this time?
• If the indicators are greater than the forecast, the loonie will rise;
• If the indicators are lower than the forecasts, the loonie will fall.
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.