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.
UK pound tacks on, shrugging off May’s Brexit failure
On Wednesday, the UK pound managed to ascend in Asia notwithstanding British Prime Minister Theresa May’s Brexit deal faced another defeat in the country’s parliament.
Fresh uncertainties along a further blow to the likelihood of an orderly Brexit – these were the consequences of that defeat.
On Wednesday, the currency pair GBP/USD managed to stabilize, notwithstanding the news, having dived by nearly 0.7% yesterday. Eventually, this currency pair hit 1.3083, heading north by about 0.1%.
A senior currency experts at the Commonwealth Bank of Australia, Joseph Capurso noted that in case British lawmakers decided to depart from the European bloc without a deal, Britain’s currency could decline 4%-8%.
This week British lawmakers are braced for voting once again in order to decide on a no-deal exit deal, or whether to extend the March 29 departure deadline.
Some financial analysts are assured that the UK legislative body will most probably hurl out a no-deal Brexit plan, so the March 29 exit date will be likely extended.
Besides this, the currency pair AUD/USD extended its losses right after both the National Bank of Australia’s business conditions as well as business confidence index for last month missed forecasts.
Estimating the purchasing potential of the evergreen buck against its several key peers the USD index rallied by up to 0.1% ending up with 96.968.
On Tuesday, the evergreen buck went down because tame American inflation data affirmed hopes that the major US bank will keep refraining from lifting interest rates.
The currency pair USD/CNY jumped by 0.1% hitting 6.7094. The Yuan reference rate was set at 6.7114 by China’s key bank versus yesterday’s fix of 6.7128.
The currency pair USD/JPY declined by 0.1% demonstrating an outcome of 111.27.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
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.