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 had a record week last week, the best one since mid-December. It posted gains of 1.6% after the pair falling to 3.7% in January. The key event to keep an eye for is Manufacturing Sales. The Bank of Canada seems to be implementing similar tactics to the Federal Reserve, in that there are expectations of easing monetary policy after raising rates in 2018.
GBP/USD recorded notable losses for a second week in a row, dropping 1%. This week’s main events are the Preliminary GDP and CPI. As many were anticipating, the Bank of England kept the benchmark rate at 0.75%. The bank’s rate statement was related to the unpredictable nature of the British economy. The bank scaled back its growth forecast, from 1.7% to 1.2%.
The dollar from down under recorded its worst week in quite a while (since October), dropping by a staggering 2.2%. The Aussie has declined 2.5% in February, taking back most of January’s gains. The Reserve Bank of Australia kept the benchmark rate at 1.5%, notwithstanding pressure to go slow on policy regarding the weakness in household spending and property prices. Retail sales, which is a key guesstimation of consumer spending, declined 0.4%, its first decline in the new year.
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