|

Forecasting the upcoming week: Focus shifts to the FOMC Minutes and the Jackson Hole Symposium.

The US Dollar (USD) has resumed its weekly downside, as investors have started to price in further rate cuts by the Federal Reserve, while mixed US data releases also kept the currency on the defensive.


The US Dollar Index (DXY) closed its second consecutive week in the red, slipping back to the sub-98.00 region amid steady speculation of extra rate reductions. The NAHB Housing Market Index will be the only data release on August 18. Building Permits, Housing Starts, and the API’s weekly report on US crude oil inventories are due on August 19. The usual weekly MBA Mortgage Applications, the EIA’s weekly report on US crude oil inventories and the FOMC Minutes are all expected on August 20. The Jackson Hole Symposium kicks in on August 21, alongside the release of weekly Initial Jobless Claims, the Philly Fed Manufacturing Index, flash S&P Global Manufacturing and Services PMIs, Existing Home Sales, and the CB Leading Index. The Jackson Hole Symposium will continue on August 22.


EUR/USD added to its previous weekly advance, reclaiming the 1.1700 region on the back of the intense correction in the Greenback. The Balance of Trade results in the euro area are due on August 18, while the Current Account results for the bloc are expected on August 19. The final Inflation Rate in the EMU will be released on August 20 along with Producer Prices in Germany. The advanced HCOB Manufacturing and Services PMIs are due in Germany and the Euroland on August 21, followed by EMU’s Construction Output and the flash Consumer Confidence gauge in the bloc. The final Q2 GDP Growth Rate in Germany will wrap up the docket alongside the ECB’s Consumer Inflation Expectations and Negotiated Wage Growth.


The continuation of the bearish tone in the US Dollar and the hawkish cut by the BoE kept the constructive tone around GBP/USD well in place this week. The UK Inflation Rate is due on August 20, while Public Sector Net Borrowing, preliminary S&P Global Manufacturing and Services PMIs and CBI Industrial Trends Orders will all be published on August 21. Finally, Retail Sales, and theGfK Consumer Confidence gauge will come on August 22.


USD/JPY extended its erratic performance for yet another week, hovering around the 147.00-148.00 region and closely following developments on the trade front as well as speculation over the Fed’s rate path. The Tertiary Industry Index will kickstart the domestic calendar on August 18. Balance of Trade results are due on August 20, seconded by Machinery Orders. The weekly Foreign Bond Investment figures will be released on August 21 alongside flash S&P Global Manufacturing and Services PMIs. On August 22, the Inflation Rate will be the salient data release.


AUD/USD could not capitalise on the renewed weakness around the US Dollar, retreating modestly on a weekly basis around the 0.6500 neighbourhood. Consumer Inflation Expectations are expected on August 18, followed by the Westpac Consumer Confidence print on August 19. The advanced S&P Global Manufacturing and Services PMIs are due on August 21.


Anticipating economic perspectives: Voices on the horizon

The RBA’s Connolly will speak on August 19, followed by the Fed’s Bowman.

The RBA’s Jones and McPhee speak on August 20, ahead of the Fed’s Waller and Bostic.

The Fed’s Bostic speaks on August 21.

The Fed's Powell will speak on August 22.


Central banks: Upcoming meetings to shape monetary policies

The central banks’ calendar will be concentrated on August 20:

PBoC (act. 3.00%-3.50% vs. 3.00%-3.50% exp.).

BI (act. 5.25% vs. 5.25% exp.)

RBNZ (act. 3.25% vs. 3.00% exp.)

Riksbank (act. 2.00% vs. 2.00% exp.)

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to PremiumSign In

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

More from Pablo Piovano
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD remains below 1.1750 ahead of ECB policy decision

EUR/USD remains on the back foot below 1.1750 in the European session on Thursday. Traders move to the sidelines and refrain from placing any fresh directional bets on the pair ahead of the ECB policy announcements and the US CPI inflation data. 

GBP/USD ticks north following BoE’s announcement

The Bank of England decided to cut the benchmark interest rate by 25 basis points as expected. The MPC voting was tight, with just 5 out of 9 officials backing the decision. Sterling Pound advances on relief as investors anticipated a more dovish outcome.

Gold holds losses below $4,350 ahead of US CPI report

Gold struggles to capitalize on the previous day's move higher and holds its pullback below $4,350 in the European session on Thursday. The downtick could be attributed to some profit-taking amid a US Dollar bounce. All eyes now remain on the US CPI inflation data. 

US CPI set to grow at stable 3.1% in November, further complicating the Fed’s dilemma

The US Consumer Price Index is forecast to rise 3.1% YoY in November, a mild uptick compared with September. The inflation report will not include monthly CPI figures.

Bitcoin steadies near $87,000 as strong ETF inflows offset bearish pressure

Bitcoin price hovers around $87,000 on Thursday, stabilizing after declining earlier this week. US-listed spot ETFs recorded $457.29 million in inflows on Wednesday, the highest single-day inflows since November 11.

Dogecoin Price Forecast: DOGE breaks key support amid declining investor confidence

Dogecoin (DOGE) trades in the red on Thursday, following a 4% decline on the previous day. The DOGE supply in profit declines as large wallet investors trim their portfolios. Derivatives data shows a surge in bearish positions amid declining retail interest.