Last week offered us a number of interesting economic results, which we used for our trading on the foreign exchange markets.
USD
Our eyes were mostly on the US dollar and its results from US retail sales, which unexpectedly rose in August. With this surprisingly strong August report, the US dollar was unceremoniously pleased and began to strengthen confidently. Thus, from a certain perspective, US retail sales are 15.1 % higher than they were last year.
At the end of the week, the US dollar was boosted by rising yields on 10-year US Treasuries. Analysts at Goldman Sachs expect US Treasury yields to rise, but despite these economic indicators, the US dollar will fall for the rest of 2021.
AUD
The Australian dollar also offered further trading opportunities last week as it began to weaken slightly due to higher consumer inflation and mild concerns about the Delta virus mutation. RBA Governor Lowe uttered that the Delta outbreak, although delayed, did not derail the economic recovery.
EUR
In the eurozone, we were intrigued last week by ECB Executive Board member Isabel Schnabel and her additions to the latest ECB statement. Schnabel predicts that inflation in the eurozone is likely to ease noticeably next year. People are understandably worried about inflation developments, so their eyes will be on the central bank's next statements.
What's in store for the current trading week?
This week, the US and Japan will offer us interesting fundamental aspects in terms of interest rate decisions. Given such events, we expect more volatility in the markets, which will have an impact for trading.
Sources: https://www.forexlive.com/
Photo by Anna Nekrashevich from Pexels
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