Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Yen drops in Asia
On Friday, the Japanese yen held weaker against the greenback in Asia, with trade light as well as direction focused on end of the week indicators in America, including consumer sentiment.
The USD/JPY hit 113.46, ascending 0.13%, while AUD/USD reached 0.7683, soaring 0.08%. Meanwhile, GBP/USD showed 1.2353, tumbling 0.04%, while EUR/USD gained 0.07%, being worth 1.0774.
The US dollar index, estimating the greenback’s value against a trade-weighted basket of six crucial currencies, declined 0.03%, hitting 100.06, losing more than 1% on the week.
On Friday, the People's Bank of China set the Yuan mid-point at 6.8873 against the greenback, compared with the previous outcome of 6.9003.
Overnight, the evergreen buck traded lower after the Fed failed to adopt a more aggressive outlook as for the pace of rate lifts this year.
The British pound traded steeply higher against the greenback, reaching a two week peak of $1.2373, after the Bank of England left interest rates intact, though hinted that a rate lift could be in the pipeline.
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.
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.