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.
US GDP growth: keep an eye on the USD
The United States will publish the level of preliminary GDP growth at 15:30 MT time on November 27. The indicator represents the annualized change in the value of all goods and services produced by the economy. Traders pay attention to the preliminary release, as it gives a preview into the economic activity of a country. If the economic conditions are good, the Federal Reserve will consider applying changes to the current interest rate to the upside. According to the forecasts, the preliminary GDP growth will advance by 1.9%.
• If the actual level is higher than the forecasts, the USD will rise.
• If the actual level is lower than the forecasts, 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.