The visit by US House Speaker Nancy Pelosi to Taiwan spooked markets this week as fears circulated around a potential flare-up between China and the US. However, most analysts saw this as posturing, and calm quickly returned to stocks. The Reserve Bank of Australia followed the Fed in moving to a meeting-by-meeting basis and the Bank of England did too stressing it was not on a ‘pre-set path’. Next week expect US Core inflation to be a key focus. The best opportunity will likely come from any indication that peak inflation has been and gone, so this is a ‘don’t miss’ economic data release.

Other key events from the past week

AUD: Interest Rate Decision, Aug 02: The RBA moved to a meeting-by-meeting basis this week as they want to assess incoming data before guaranteeing a commitment to further rate hikes. You can read more on the details here.

GBP: Interest Rate Decision, Aug 04: The Bank of England gave a dour out-look for growth in the UK sending the GBP lower. The 2023 recession projections were brought forward to Q4 2022 and are now expected to last for 5 quarters.

Geopolitics: US, China, & Taiwan Aug 02: US House Speaker officially concluded her visitor to Taiwan on Wednesday this week in a move that had markets jittery on Tuesday. However, geopolitics tends to have a short-lived reaction in markets. 

Key events for the coming week

AUD: Consumer confidence, Aug 09: After the RBA’s more dovish decision last week will the Australian consumer show signs of stress over rising inflation and higher interest rates? 

Going for gold? Gold has some great seasonals in play right now. 

USD: Core Inflation, Aug 10: Expectations are US Core inflation will fall to 8.9% from 9.1% y/y. However, if inflation remains high & prints above 9% the USD could find bids if investors think the Fed will still hike rates aggressively.


Learn more about HYCM

High Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD under pressure below 0.7100 amid China concerns, USD rebound

AUD/USD under pressure below 0.7100 amid China concerns, USD rebound

AUD/USD remains pressured below 0.7100 amid fresh US-Sino trade concerns, surging China's covid cases and softening Australian inflation expectations. Investors reassess the US inflation data and its implications on the next Fed rate hike move. 

AUD/USD News

EUR/USD corrects below 1.0300 as DXY strengthens ahead of US Michigan CSI

EUR/USD corrects below 1.0300 as DXY strengthens ahead of US Michigan CSI

EUR/USD has tumbled to near 1.2850 amid a significant recovery in the DXY. A lower US CPI print has trimmed the odds of hawkish guidance while rate hike odds are solid. This week, the US Michigan CSI data will be of utmost importance.

EUR/USD News

Gold slips below $1,790 as DXY extends recovery, Michigan CSI eyed

Gold slips below $1,790 as DXY extends recovery, Michigan CSI eyed

Gold price has dropped to near $1,785.00 after surrendering the critical support of $1,788.00 in the Asian session. The precious metal has entered into a healthy correction phase after printing a fresh monthly high at $1,807.96 on Wednesday.

Gold News

XRP price attempts a 15% rally on Ripple’s interest in buying Celsius' assets

XRP price attempts a 15% rally on Ripple’s interest in buying Celsius' assets

XRP price shows a willingness to move above a significant resistance level, which it has attempted to do so for the past three months and failed each time. While this attempt is like any other and could fail, especially if the momentum is lacking.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures