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Forex Weekly Forecast: August 20-24

Forex Weekly Forecast

This week was in the sign of the US dollar rally and the Turkish lira crisis. Geopolitical risks will remain in focus in the next week, as the U.S. is expected to hit Russia with new sanctions on Wednesday.

Here are the highlights for the next week.

Monday, August 20

The first day of the week will be marked with two significant events in the US and Australia.
Namely, Atlanta Fed President Raphael Bostic is to speak at an event in Tennessee. Philip Lowe, Governor of the Reserve Bank of Australia is scheduled to speak at an event of the ASIC in Canberra. During his speeches, markets often remain volatile, as traders look for interest rate hints.

Tuesday, August 21

Tuesday is reserved for the Reserve Bank of Australia to publish the minutes of its latest policy setting meeting. On the other hand, the UK is expected to report on public sector borrowing figures.

Wednesday, August 22

August 22nd is scheduled for New Zealand’s report on retail sales, and Canada’s publishing of retail sales figures. Considering the U.S.,
One of the main forex events in the week ahead will be testimony from Bank of England governor Mark Carney on August 22, covering the inflation and economic outlook. The chances of an interest rate hike in the short term are generally viewed as low, due to the increasing uncertainty around Brexit.

Thursday, August 23

Economical events in Europe will take the stage on Thursday, as the eurozone is to release data on manufacturing and service sector activity. The ECB is to publish the minutes of its latest policy setting meeting.

Friday, August 24

The last trading day in the week will see the U.S. releasing data on durable good orders. This significant economic indicator provides the Fed with information about investment and long-term moves in the economy. We will now find out the initial estimate for July, the first month of Q3.
In addition, Fed Chairman Jerome Powell is to speak at the Jackson Hole Symposium. The annual gathering of central bankers in Wyoming usually serves for signalling policy changes. Will Powell move markets we are yet to see.