FOMC rate decision and Brexit negotiations take center stage
During the upcoming week traders the Federal Open Market Committee interest rate decision, and a key Brexit vote in UK Parliament are the key market moving events that traders and investors will be focused on. Most economists are expecting that the Federal Reserve will keep interest rates unchanged, and downgrade economic projections for the United States economy next year. Market participants will also be closely observing the outcome of a key Brexit vote on British PM Boris Johnson’s Withdrawl Agreement.
Other important events on the economic calendar this week include the release of the Reserve Bank of Australia Meeting Minutes, and the monthly Employment report from the Australian economy. The United Kingdom also releases key Inflation, Wage, Unemployment, and Retail Sales figures this week.
Monday 14th September, UK Parliament Brexit Vote
The United Kingdom Parliament will hold a key vote on whether the British Prime Minister Boris Johnson's Brexit Plan is valid or not. The British pound currency is likely to experience substantial amount of volatility in the lead upto and after the vote. Volatility could also spread across to the FTSE 100 index and individual UK stocks.
- The GBPUSD pair is only bullish while trading above the 1.3170 level, key resistance is found at the 1.3280 and 1.3350 levels.
- If the GBPUSD pair holds below the 1.3170 level, sellers may test towards the 1.2680 and 1.2500 levels.
Tuesday 15th September, RBA Meeting Minutes
The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is bearish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate decrease.
- The AUDUSD pair is only bearish while trading below the 0.7280 level, key support is found at the 0.7200 and 0.7130 levels.
- If the AUDUSD pair moves above the 0.7280 level, buyers may test towards the 0.7380 and 0.7450 levels.
Wednesday 16th September US FOMC rate decision
The Federal Open Market Committee meets eight times per year to decide on United States monetary policy and where to set the nations interest rate. Rate changes impact interest rates for US consumer loans, bonds, mortgages and the US dollar exchange rate. The decision of the FOMC policy statement is usually very important, maybe more important than the actual interest rate move made by the central bank, due to it being highly anticipated by market participants. The policy statement includes hints for the future and contains the central banks collective outlook on the economy.
- The USDCHF pair is only bearish while trading below the 0.9240 level, further losses towards 0.9000 and 0.8750 levels remain possible.
- If the USDCHF pair trades above the 0.9240 level, buyers are likely to test the 0.9300 and 0.9450 resistance levels.
Thursday 17th September, US Initial Jobless Claims
US Initial Jobless Claims is released by the US Department of Labor on a weekly basis, and is a measure of the number of jobless claims filed by individuals seeking to receive state jobless benefits. This figure measures the overall strength in the United States labor market, and is closely followed by both traders and investors.
- The USDCAD pair is only bearish while trading below the 1.3220 level, key support is found at the 1.3130 and 1.3000 levels.
- If the USDCAD pair moves above the 1.3220 level, buyers will likely test towards the 1.3300 and 1.3400 resistance levels.
Friday 18th September, UK Retail Sales
United Kingdom Retail Sales is released by the National Statistics, andmeasures the total receipts of retail stores in the UK. Changes in Retail Sales are widely followed as an indicator of consumer spending, and are closely watched by traders and the Bank of England. Generally speaking, a high reading is seen as positive, or bullish for the British pound currency, while a low reading is seen as negative or bearish for the British pound currency.
- The EURUSD pair is only bearish while trading below the 1.1750 level, key support is found at the 1.1680 and 1.1600 levels.
- If the EURUSD pair trades above the 1.1750 level, buyers will likely test towards the 1.1915 and 1.2000 resistance levels.