Weekly Market Review August 29

Another speech by Fed chairperson Janet Yellen is expected today at 13:30 GMT and this may further boost the US dollar. The greenback is currently down by merely 0.02 percent as seen on the U.S. dollar index earlier today but has been able to exert quite much pressure on other major currencies. Following the speech of Fed’s chairperson on Friday, the greenback gained enough momentum and the same scenario is expected to repeat today.

While all eye set on the Federal Reserve again, another important economic indicator is awaited by the end of this week, which is the nonfarm payrolls data. Amidst several other major data releases, the NFP will be closely watched. In the crude market, crude prices have fallen again as a rising oil output was noted in IRAQ, dooming talks of a freeze on output to stabilize market prices. Brent crude futures LCOc1 traded at $49.54 a barrel earlier today.

As of today, the market opens with extremely important economic indicators from U.S. with personal spending data at 12:30 GMT and Fed chair Yellen speech at 13:30 GMT. On Tuesday, the Eurozone will be the highlight with the consumer confidence data release at 09:00 GMT and services sentiment at the same time. On the same day, the U.S. CB consumer confidence data will be available at 14:00 GMT. At 07:55 GMT on Wednesday, the German Unemployment change will be released at 07:55 GMT and Eurozone’s CPI data release is scheduled at 09:00 GMT. At 12:15 GMT on the same day, the ADP Nonfarm Employment change data is set for release, followed by pending home sales data at 14:00 GMT. Moving on to Thursday, China manufacturing data will be made available early in the morning, while Manufacturing PMI data is set for release in Germany at 07:55 GMT and UK at 08:30 GMT. ISM manufacturing PMI data is set for release on the same day in U.S. at 14:00 GMT. Friday will be the day to gauge for with Nonfarm payrolls data awaited at 12:30 GMT and before that the UK construction PMI data is expected at 08:30 GMT.

Technical Analysis:
The EURUSD pair edged lower on the chart as the U.S. dollar picked up momentum. Breaking out of the lows, the USD weighed on other major currencies. On Friday, the pair EURUSD session started at the 1.128 level and consolidated until the 1.130 level. Later, the pair was dragged lower to the 1.118 level due to several pullbacks. Currently, the pair hovers around the 1.120 level and may not move higher than this short-term resistance level. With fewer economic indicators from the Eurozone, this pair is expected to trade in the lower vicinity of this session.
The USDJPY upped by 0.29 percent after the speech of Janet Yellen on Friday but on the U.S. dollar index the dollar is still slightly weak by 0.02 percent. As the nonfarm payrolls data is expected on Friday this week, the USD is expected to remain volatile versus a basket of major currencies. On Friday, the session of the pair USDJPY was initiated at the 100.5 level and consolidated till the 100.2 level. Later, the speech of Fed’s chairperson boosted the pair up to the 102.2 level. The pair is expected to remain slightly bullish around the same level, thus keep an eye here.

On Friday, the GBPUSD pair ticked lower as the dollar gained more strength. The UK GDP data did not help the Pound Sterling to remain up in the bullish zone and was dragged in the lower regions of the chart. On Friday, the pair GBPUSD initiated the session around the 1.319 level and consolidated to trade around the 1.321 level. The pair later turned bearish and fell to the 1.312 level and the session came to a halt around the same vicinity. Given the lack of economic indicators in UK, the USD is expected to exert some pressure during the trading session today. Keep an eye on this pair.
Economic Calendar