This week sees the release of interest rate decisions in several countries, but those from the Reserve Banks of Australia and New Zealand are probably the most important to forex traders. The markets are expecting the RBNZ to cut interest rates, but the RBA is expected to hold action after sequential rate cuts in June and July 2019. The RBA has never cut rates below its current levels, but any hint of possible cuts to 0.75% from the RBA chief would be an interesting factor in trades involving the Aussie Dollar this month.
Furthermore, we have statements from key members of the FOMC, which may throw some light on whether there will be another rate cut by the Fed in 2019. After strong gains following a less-than-dovish statement from Fed Chief Jerome Powell, the US Dollar has been put under pressure by recent trade tariffs on Chinese goods and a lackluster jobs report. Odds for a September rate cut are rising, and traders would be watching these speeches closely.
Friday will see the release of the UK’s GDP figures, as well as the Canadian employment data. After having its worst week in a very long while, the British Pound is in for another volatile week. There is a market consensus for the GDP to drop 2 points to 0.1%. A worse than expected number will pile on more pressure for the cable, already being hammered by Brexit uncertainties.Don’t miss a beat! Follow us on Twitter.
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