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.
Yen ascends ahead of Japan-US trade negotiations
On Thursday, the Japanese yen rallied to its strongest value versus the evergreen buck for 9 days ahead of the highly anticipated negotiations between Japan and America as well as rumors over when Japan’s main financial institution is going to give up its extremely easy monetary policy.
In addition to this, the New Zealand dollar went down due to the fact its major bank stuck with rather a dovish policy.
While financial markets are still on the edge due to the escalating trade conflict between China and the United States, traders are waiting for the key event scheduled to start on Thursday in Washington. Market participants hope that Japan is going to try averting harsh duties on its auto exports and reject American demands for a bilateral free trade pact.
Japan’s currency has dived nearly 4% versus the evergreen buck for the last six months, driving rumors that its depreciation could turn out to be an issue in the upcoming negotiations because the current US presidential administration has spurred worries over countries knowingly weakening their national currencies.
On Wednesday, the Japanese yen had been backed by the minutes of a July 30-31 BOJ board gathering. The crucial report revealed that one member of the board was eager to allow long-term profits to move in an even wider range than the band indicated by the major financial institution.
Meanwhile, the Australian dollar had tacked on for the past two trading marathons, backed by a recent retreat by China’s currency paused for the time being.
Besides this, the UK currency was nearly intact sticking with $1.2877 after yesterday’s sink to about $1.2854 that happened to be its worst outcome in 2018. However, versus Japan’s currency the UK pound slumped to an 11-month dip of 142.34.
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.
The Federal Reserve (FOMC), US central bank, will publish its December meeting minutes on Wednesday, January 5, at 21:00 GMT+2 (MetaTrader time).
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.