Weekly Market Analysis (Aug 23 – Aug 27): Know-How News Impacted Your Currency

August 23

German Flash Services PMI (Euro Zone)

Pair Projection What is this news about?
EURUSD, EURJPY, EURGBP, EURCAD, EURAUD, EURNZD, EURCHF Prices of EUR is anticipated to be volatile. The french PMI will start off with a mild volatility and Germany's PMI might intensify the volatility. It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy;

Flash Manufacturing PMI (UK)

Pair Projection What is this news about?
GBPUSD, GBPJPY, GBPCAD, GBPAUD, GBPNZD, GBPCHF, EURGBP, GBP pairs are to be volatile also but be careful when trading GBPUSD and GBPEUR, these pairs could have candle size wicks on both end. Federal Reserve FOMC members vote on where to set the nation's key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy;

Flash Manufacturing PM (USA)

Pair Projection What is this news about?
USDCAD, EURCAD, CADJPY, NZDCAD, CADCHF, AUDCAD, GBPCAD USD might have a higher time frame break of structure... and prices can get volatile. It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy;

August 24

Core Retail Sales q/q (New Zealand)

Pair Projection What is this news about?
All NZDXXX & XXXNZD PAIRS. NZD might get volatile, but the news ain't that much of an importance. Automobile and gas station sales account for about 20% of Retail Sales, but they tend to be volatile and distort the underlying trend. The Core data is therefore thought to be a better gauge of spending trends;

Richmond Manufacturing Index (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY Also not much of impactful new but USD might react, as it always does to this news. Keep an eye on the chart. Survey of about 55 manufacturers in the Richmond area which asks respondents to rate the relative level of business conditions including shipments, new orders, and employment;

BOJ Core CPI y/y (Japan)

Pair Projection What is this news about?
USDJPY, EURJPY, CADJPY, AUDJPY, GBPJPY, CHFJPY, NZDJPY This is Bank of Japan's core CPI report... prices of JPY might get volatile. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate;

August 25

German ifo Business Climate (Euro Zone)

Pair Projection What is this news about?
EURUSD, EURJPY, EURGBP, EURCAD, EURAUD, EURNZD, EURCHF Minor volatility is expected from EURXXX currencies, lookout for fake manipulations on the chart! It's a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment;

Core Durable Goods Orders m/m (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY This is a very anticipated news for the retail traders ans it impacts a from time to time on USDXXX pairs. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate;

Crude Oil Inventories (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY & CRUDE OIL USDXXX pairs and XTIUSD/Crude Oil is anticipated to be volatile. It's the primary gauge of supply and demand imbalances in the market, which can lead to changes in production levels and price volatility;

August 26

Prelim GDP q/q (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY USD is anticipated to get volatile around this time. Lookout on the charts and wait for the actual outcome. While this is q/q data, it's reported in an annualized format (quarterly change x4). The 'Previous' listed is the 'Actual' from the Advance release and therefore the 'History' data will appear unconnected. There are 3 versions of GDP released a month apart - Advance, Preliminary, and Final. The Advance release is the earliest and thus tends to have the most impact;

Jackson Hole Symposium (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY USD might remain volatile the whole day! This symposium is considered very important. The Economic Policy Symposium, held in Jackson Hole, Wyoming, is attended by central bankers, finance ministers, academics, and financial market participants from around the world. The meetings are closed to the press but officials usually talk with reporters throughout the day. Comments and speeches from central bankers and other influential officials can create significant market volatility;

Unemployment Claims (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy; Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy;

August 27

Core PCE Price Index m/m (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF,GBP/USD, NZD/USD, AUD/USD, USD/JPY Core PCE Index holds a major importance in making the USD charts volatile. Differs from Core CPI in that it only measures goods and services targeted towards and consumed by individuals. Prices are weighted according to total expenditure per item which gives important insights into consumer spending behavior. This is rumored to be the Federal Reserve's favorite inflation measure, but CPI is released about 10 days earlier and tends to garner most of the attention;

Fed Chair Powell Speaks (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY USD's volatility from the prior news might continue in a direction. Keep an eye on the actual contents of his speech. As head of the central bank, which controls short term interest rates, he has more influence over the nation's currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy;

Jackson Hole Symposium (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY USD might remain volatile the whole day! This symposium is considered very important. The Economic Policy Symposium, held in Jackson Hole, Wyoming, is attended by central bankers, finance ministers, academics, and financial market participants from around the world. The meetings are closed to the press but officials usually talk with reporters throughout the day. Comments and speeches from central bankers and other influential officials can create significant market volatility;

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