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#1 21-09-2020 13:28:31

Admin & Trader
From: Paris - France
Registered: 21-12-2009
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EUR/USD: events that may move the USD this week

EUR/USD: events that may move the USD this week

The previous trading week ended as it began. Despite the statement by the FOMC (Federal Open Market Committee) and the press conference that followed, the USD didn't budge much. In fact, the eurodollar pair ended the week exactly as it began, at $1.1850.

Market players seem to be avoiding taking risks in the run up to the November presidential elections which are a month and a half away. However, the week ahead is filled with important economic events, with the Fed's Powell speech taking place over four consecutive trading days.

Key events for the week ahead

On Tuesday, Powell is testifying on the CARES Act before the House Financial Services Committee. Earlier in the day, Bank of England Governor Bailey spoke at a webinar hosted by the British Chamber of Commerce. Last week, the Bank of England suggested it was looking at negative rates, creating volatility in GBP pairs, so it should come as no surprise if the same thing will happen this week.

Traders of the NZD are on alert this week as the Reserve Bank of New Zealand is expected to deliver its monetary policy. On the same day, PMIs in Europe and another testimony from Powell will likely make the equity and currency markets volatile.

Thursday begins with the Swiss National Bank's delivery of its monetary policy assessment. The CHF has been one of the currencies that has appreciated recently, despite the SNB keeping rates in negative territory. Powell is testifying before Senate Banking Committing this time around, and USD traders will also be interested in what Treasury Secretary Mnuchin has to say at the same hearing.

Friday has no major events except for U.S. durable goods orders. Judging by the week that is filled with speeches in the U.S. and two central banks delivering monetary policy, there is a good chance that volatility in the currency market will outpace the price action in the coming week.

The USD has been consolidating for some time now against the G10 currencies, with no clear direction for the whole summer. Will this be the week of the breakout?

"Anything worth having is worth going for - all the way." - J.R. Ewing



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