Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
US dollar stabilizes after Fed minutes
On Thursday, the US currency stabilized versus its rivals after the Fed’s policy gathering minutes took the wind out of its advance. Financial markets were waiting for comments by major bankers and also American economic reports for further clues.
The US dollar index versus major currencies didn’t change, keeping to 96.275, having sunk from Wednesday’s one-week peak of 96.512.
The evergreen buck had ascended earlier in the week after positive American economic indicators brought Treasury yields to multi-week peaks. The soar actually helped the US dollar index to move away from a nine-month sag of 95.470 hit the previous week as traders increased expectations for EU key banks to start scaling back monetary stimulus later in 2017.
However, the greenback’s growth stalled due to the Fed's minutes on its June 13-14 policy gathering issued on Wednesday. It demonstrated a rift among policymakers over the pace of future American rate hikes and also upset some dollar bulls.
The greenback stuck to 113.240 yen, drifting away from a seven-week peak of 113.690 hit overnight.
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 United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
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.