Forex Forecast And Cryptocurrencies Forecast For August 26 - 30

First, a review of last week’s events:

EUR/USD. The Jackson Hole Annual Economic Symposium has traditionally served to give investors an understanding of where the US monetary policy will move. That is why the markets were looking forward to Fed Chairman Jerome Powell speaking at this event.
On the other hand, back in the days when Alan Greenspan was Head of the Federal Reserve, another tradition appeared: let in as much fog as possible when answering questions, so as not to bind oneself with any specific promises.

This was what Powell did in Jackson Hole on Friday, August 23. He did not give a clear signal for the Fed rate in the future, explaining that there were no precedents that could serve as the basis for a specific answer. But he said that the Fed was ready to provide more incentives in the event of a slowdown in economic growth.

Powell could not do without a hint that the trade wars waged by the US president are causing a lot of headache to the American Central Bank either.

Speaking of wars. Inside the EU, a counterattack plan for trade tariffs introduced by Trump has matured. A retaliatory strike scheme is described in detail in 173 pages, as the main goals for which the American hi-tech giants Apple, Amazon, Facebook, Google are chosen. A counterattack may also include the unilateral imposition of duties on goods from the United States. In parallel, it is proposed to invest about €100 billion into shares of European companies in order to increase their competitiveness compared to enterprises in the USA and China.

Returning to Powell, despite the vagueness of his wording, as well as the discord among other members of the Fed, many market participants still expect one or two (or even three) base rate cuts before the end of 2019. Moreover, the next cut may be announced on September 18.

Naturally, this market sentiment could not but affect the quotes, and on Friday evening the pair came close to the height of 1.1150;

GBP/USD. In addition to the head of the Fed, the head of the Bank of England Mark Carney also spoke on Friday, August 23. However, an incomparably greater impression on the market was made by the words of German Chancellor Angela Merkel that were said the day before that the EU and Great Britain could reach an agreement on Brexit by October 31. Of course, this is just an intention, but it helped the pound a lot: thanks to these words, the British currency reached a three-week high, rising on Thursday, August 22 to 1.2272. Then a pullback followed, but after the speech of the Fed head, the bulls prevailed once again, raising quotes to the level of 1.2285 by the end of the week;

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