The week ahead: dollar on the defensive; check Jackson Hole symposium

InvestingOnline.com 21/08/2018, 03:18

A quiet week for the forex market is on the table as the economic calendar comes light and with only a few significant economic releases. The busiest day will be Thursday with PMI releases across the world, housing data in the United States and the consumer confidence in the eurozone.

Among critical economic data, watch out for Canadian retail sales and FOMC minutes on Wednesday, and German GDP on Friday.

On the chart, the dollar index is trading negative after rejecting highs at 97.00 on August 15. With the pair trading now at 95.70, 0.42% down on the day, USD rivals are rising.

The EUR/USD is trading positive for the fifth day as the pair is extending gains from 1.1300 low traded on August 15 to test the 20-day moving average today at 1.1540.

EURUSD daily chart August 20 b

The British Pound is also trading positive against the US Dollar as the GBP/USD is posting its fourth positive day in a row. The pair reconquered the 1.2800 l, and technical conditions are suggesting more upside room.

Check the most important events for the week:

Tuesday, August 21

United Kingdom: Public sector net borrowing
New Zealand: Retail sales

Wednesday, August 22

Australia: Westpac leading index
Japan: All industry activity index
Canada: Retail sales
United States: Existing home sales
United States: FOMC minutes
Japan: Foreign investment

Thursday, August 23

Unites States: Jackson Hole symposium
Japan: Leading economic index
Japan: Coincident index
Switzerland: Industrial production
Germany: Markit manufacturing, services, and composite PMI
Eurozone: Markit manufacturing, services, and composite PMI
Eurozone: ECB monetary policy meeting accounts
United States: Jobless claims
United States: Housing price index
United States: Markit manufacturing, services, and composite PMI
United States: New home sales
Eurozone: Consumer confidence
New Zealand: Trade balance
Japan: Inflation

Friday, August 24

Germany: Gross domestic product
United States: Durable goods orders