Forex News Trading Strategy for the 29th August – 2nd September
This week features the both U.S. inflation and employment data, both of which are important for trader sentiment after Friday’s comments from the more confident Fed Chief. Janet Yellen, speaking from Jackson Hole, voiced support for another increase in US interest rates, but overall still suggested the central bank would remain data dependent. Nevertheless, the market took the comments as hawkish, and after some whipsaw price action, the dollar finished off strong.
Monday was a UK bank holiday. And we saw the release of the Core PCE and Personal Spending from the U.S. Core PCE came in as expected, an unimpressive 0.1% for the month, and the y/y stayed steady at 1.6%. Personal Spending and Income also came in as expected, however did see upward revisions to the previous month’s prints.
Tuesday during Asia, we get the release of the Australian Building Approvals for July. London brings the release of both German and Spanish inflation figures. Later during New York is the U.S. CB Consumer Confidence print.
Wednesday, during London, German jobs data and Euro Zone inflation is on tap. After New York joins the day’s action, ADP will release their jobs report in a preview of what could be to come for Friday’sNFP. We will also see the release of the Canadian GDP for June. Then to finish off the New York session, we will see the latest EIA inventories which showed a surprise build last week.
Thursday’s Asian session is a busy one and it begins with data from the world’s second largest economy, when China releases PMI data for August. We will see both data from the CFLP and Markit. Also during Asia, we get the latest Australian Retail Sales for July, and Private Capital Expenditure figures for Q2. During London comes the UK Manufacturing PMI for July, released by Markit. Then during New York, we get the Weekly Jobless Claims from the U.S., as well as the August ISM PMI data.
Friday brings the main event during New York, the closely watched U.S. Labor market report, but first we will see UK Construction PMI figures during London. UK data has been closely watched since the “Brexit” vote in order to determine when the BOE is likely to loosen policy further. Just the opposite is true for the U.S. jobs data later in the day. Here traders are looking for clues to determine the timing of the next rate hike from the Federal Reserve.
Other Forex news trading events taking place this week can be found here: Forex Factory Calendar.