Forex - Weekly Outlook: Sept 23 - 27
Investing.com
Published Sep 22, 2019 11:09
Investing.com - Investors will be looking ahead to appearances by a number of Federal Reserve policymakers this week after last week’s Fed meeting pointed to growing divisions among officials over the future direction of monetary policy.
Economic data due this week, including a report on durable goods orders will be closely watched amid concerns over the strength of the economy.
Brexit will also remain in the spotlight, with Britain's Supreme Court expected to make a ruling on whether Prime Minister Boris Johnson acted unlawfully in suspending parliament.
Investors will also be closely following developments after hopes for a breakthrough in the U.S. - China trade war receded further on Friday, when Chinese officials unexpectedly canceled a visit to farms in Montana and Nebraska.
The U.S. dollar index, which measures the greenback against a basket of currencies rose on Friday, and posted its first weekly increase in three, helped by hopes that the Fed would not lower rates aggressively.
The Fed cut interest rates for the second time this year on Wednesday, but gave mixed signals on future rate cuts.
Other major central banks, including the Bank of England, the Bank of Japan and the Swiss National Bank, left rates unchanged last week.
Sterling retreated from multi-month highs versus the greenback and the euro after the Irish foreign minister said that London and the European Union were not yet close to a Brexit deal.
Sterling had briefly been the biggest gainer against the dollar overnight after European Commission President Jean-Claude Juncker said late Thursday he thought Brussels could reach agreement with Britain on its departure from the European Union.
The euro fell 0.2% on the day to 1.1015, while the greenback slipped 0.4% to 107.55 yen.
The Australian dollar was down to near three-week lows at 0.6768 in late trade. The New Zealand dollar sagged to 0.6259 ahead of this week’s upcoming monetary policy decision by the country’s central bank.
Ahead of the coming week, Investing.com has compiled a list of significant events likely to affect the markets.
Monday, Sept 23
Eurozone - PMI’s
ECB President Mario Draghi speaks
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U.S. - Flash PMI’s
FOMC Member Williams speaks
FOMC Member Bullard speaks
Tuesday, Sept 24
German Ifo business climate
U.S. - CB consumer confidence
Wednesday, Sept 25
Reserve Bank of New Zealand interest rate decision
FOMC Member Evans speaks
FOMC Member George speaks
U.S. - New home sales
Thursday, Sept 26
U.S. - Final Q2 GDP
U.S. - Initial jobless claims
ECB President Mario Draghi speaks
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Bank of England Gov Carney speaks
FOMC Member Bullard speaks
Pending home sales
FOMC Member Clarida speaks
Friday, Sept 27
U.S. -Durable goods orders
U.S. - Personal income and spending
--Reuters contributed to this report
Written By: Investing.com
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