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 USD may be supported by the releases
The United States will publish the level of CPI and core CPI at on October 10 at 15:30 MT time. CPI is an important indicator, which accounts for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the Fed to raise interest rates. Last month CPI came out in line with the forecast at +0.1%. As for the core level of CPI (without food and energy process), the actual figures showed an increase of 0.3% (vs. the forecast of 0.2%). If this time the releases are greater than the expectations, the USD will get positive momentum.
• If the indicators are higher than the forecast, the USD will rise;
• If the indicators are lower than the forecast, the USD 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.