Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Yen heads south as BOJ keeps asset buys steady
On Friday, the Japanese yen stayed weaker after the Bank of Japan held monetary policy intact as expected, including the tempo of asset purchases at ¥80 trillion every year.
The currency pair USD/JPY showed 11.16, soaring 0.21%, while AUD/USD hit 0.7596, soaring 0.21%. The currency pair GBP/USD went up 0.15%, being worth 1.2776.
The US dollar index, assessing the greenback’s value versus six crucial currencies, lost 0.02%, being worth 97.48.
Overnight, the greenback remained close to two-week peaks versus a basket of key currencies, underpinned by upbeat economic data, raising sentiment on the prospect of stronger American economic surge.
The British pound turned to be one of the few currencies, which shrugged of a soar in the greenback, with GBP/USD, leaping as the BoE kept rates intact, though stoked hopes of a future rate lift, disclosing that a soaring number of its members appreciated higher rates.
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.