To accurately forecast the future is something that nobody can claim bragging rights for. Even if, in a parallel universe, someone was able to do just that, forecasting for the Forex industry still be almost impossible to get right.
The unpredictability and volatility of the industry make it virtually impossible to forecast 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.
GBP/USD went through a fertile period last week, recording gains of 2.5%, as the pair peaked to its highest levels since October. Events to be mindful of this week include a speech from BoC Governor Carney and Net Lending to individuals.
Despite the uncertainty and scepticism regarding Brexit and the May administration, the pound keeps on going on a positive trajectory. It’s been six consecutive weeks now and even though many believe that the time has come for the pound to fall, it seems like they will prove wrong once again.
EUR/USD recorded little to no movement last week. This week looks more promising with the release of the eurozone and Germany GDP, CPI and manufacturing PMIs. In an unexpected turn of events, President Trump agreed to resume government operations as normal for 3 weeks.
This development will allow for Federal government workers to be paid and could open the path for a full repair of all federal government services.
Weekly Forex Forecast
This pair had a very quiet week after recording significant gains the week before. The event to be wary of this week will be the Bank of Japan summary of opinions and retail sales.
Risky attitudes were on full display on Friday after President Trump authorized the reopening of government services for three weeks. The yen did not look affected by the news and this week will be an interesting testing period for the pair.
The Australian dollar showed minor gains last week before the currency exploded on Friday. The event to look out for this week is the Australian CPI. The big news on the US government shutdown caused a minor drop in the U.S. dollar but on the other hand, boosted the Australian dollar.
The U.S-China trade dispute is still a major worry for the economy from down-under, with the U.S. giving an ultimatum for more tariffs in March.
Chinese officials will fly to Washington this week to enter the second round of trade talks with their counterparts. Making any sort of headway will be a positive sign for the Aussie dollar.
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