The Federal Reserve speeds up its quantitative tightening, and this is certainly bullish news for the USD. At the same time, this is a negative factor for the American stocks, which have entered their seasonally worst month.
Weekly Forex Outlook: September 10-14
Last week, the US dollar index presented mixed moves. Uncertainties around the NAFTA deal pulled the USD up, however, investors still have doubts about the policy of the Federal Reserve, that’s why the index couldn’t surge to the previous highs. Moreover, Mr. Trump kept silence about the new tariffs on China, that was negative for the USD. On Friday, encouraging jobs data supported the rise. Up to now, the index is still below the psychological level at 95.50.
The appreciation of the USD pulled the EUR/USD down. Moreover, Italy's budget plans stay the major concern for the eurozone as Italy has the second largest public debt among the Eurozone countries. Moreover, according to experts, the correlation between the European economy and emerging markets are increasing.
As a result, EUR/USD plunged below 1.1582. Up to now, the pair has been trying to recover. Key resistance levels are 1.1582 and 1.1632. If the USD is able to significantly increase, there are risks of the fall to 1.15 and 1.1452.
Last week the pound was affected by the Brexit news. As a result, GBP/USD was strongly volatile. At the end of the week, the pair formed a bearish shooting star candlestick. It may signal the bearish reversal. If Monday candlestick is bearish, risks of the fall will increase. Supports lie at 1.29 and 1.2790. If the pound gets support from the Brexit news and the economic data, it has chances to recover. Resistances are at 1.3033, 1.3151.
It’s time to look at the economic calendar.
On Tuesday, traders should pay attention to the British average earnings index data.
Wednesday PPI data will affect the US dollar.
Thursday will be full of events. The Bank of England and the European Central Bank will announce their interest rates. Although we don’t expect any changes, banks will give clues on the future monetary policy that will affect the currencies. Jobs data will determine the direction of the Australian dollar. The way of the USD will depend on the CPI data.
On Friday, the governor of the Bank of England will give a speech that will affect the pound. Later that day, traders of the US dollar will get retail sales data.
The gold has made a perfect retest, but will it hold against the rising dollar? Also, the Jackson Hole Symposium and Jerome Powell's speech may become critical for most assets, and finally, more economic releases and earnings reports await you.
After last week's CPI turned the markets upside down, we are looking at the performance of the US dollar…
Although the last week was intense, this one may be more dynamic and volatile. After the FOMC meeting and controversial decisions from the Bank of England, we saw a historical pound decrease, and the gold plunge. And there’s even more for you.
After the US CPI last week came out above the forecast, traders started expecting a 75-basis point rate hike…
In this video, we will talk about the potential change of a trend in the euro, another stock rally amid a global downtrend, gold prospects, and news that shakes the world right now. It’ll be a helpful video you don’t want to miss.