To accurately predict the future is something that nobody can claim bragging rights for. Even if, in a parallel universe, someone was able to do just that, predictions for the Forex industry still be almost impossible to get right. The unpredictability and volatility of the industry make it virtually impossible to predict anything. The best you can do is speculate, theorize, surmise.
Unlike our weekly recap that reviews what has happened in the Forex industry, this weekly section of our blog will give you insight into potential currency movements and significant events that will have an effect on the market.
The pair gained some ground on the lukewarm Fed decision but could not maintain its advancement for long. What’s to follow? There’s a lot of events to keep in mind this week that will most likely affect the EUR/USD. Tuesday sees the release of Retail Sales and Services PMI, whilst on Thursday you should be looking out for the ECB Economic Bulletin, the EU Economic Forecasts and the German Industrial Production figures. A really busy week for the pair.
Dollar/yen was stable for a second week in a row. Will this consistency resume in the first full week of February? It will all depend on the outcome of events that have the potential to cause some currency movement such as household spending and Average Cash Earnings. The global trade disputes continue to roam, making investors risk-averse even though the continuous talks between U.S. and China have increased hopes that the U.S. will not impose further tariffs on March 1.
The pair slowed down last week, recording losses near to 1%. This week’s most important events include the BoE rate announcement and inflation report. These events will be followed by a press conference featuring Governor Mark Carney. The BoE is expected to keep the benchmark rate at 0.75% (established in August) and the QE program at 435 billion pounds.
The dollar from down under recorded an increase of nearly 1% last week, as the pair reached 7-week highs. The Reserve Bank of Australia will be a point of reference this week, with the release of a rate statement. Also keep an eye on the NAB Quarterly Business Confidence as the global trade war took its toll on exports and overall business sentiment.
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