FOMC minutes and central bank speakers set to move markets

US policy action

During the upcoming trading week the United States economy is heavily in focus as we see the release of the FOMC meeting minutes and a host of central bank speeches. The FOMC meeting minutes is set to shed some light on whether the Federal Reserve will reduce interest rates again next month. The Jackson Hole Economic Symposium also takes place this week, financial market participants are highly anticipating this event and especially FED Chair Jerome Powell’s speech.

Aside from US central bank action, the economic calendar remains exceptionally busy with the release of the Reserve Bank of Australia Meeting Minutes, New Zealand and Canadian Retail Sales and the first official reading of eurozone PMI Manufacturing data for the month of August.

Monday 19th August, EUR Eurozone Consumer Price Index

The eurozone Consumer Price Index, released by Eurostat measures the changes in the price of goods and services from the perspective of the consumer. A higher value of the CPI represents significant inflationary pressures in the eurozone economies and also puts pressure on the European Central Bank to raise interest rates. CPI inflation data may not affect the markets significantly because CPI inflation is the European Central Bank's mandated inflation target.

∙        The EURUSD pair is bearish while trading below the 1.1130 level, key support is found at the 1.1050 and 1.1000 levels.

∙        If the EURUSD pair trades above the 1.1130 level, buyers will likely test towards the 1.1160 and 1.1200 resistance levels.

Tuesday 20th August, AUD RBA Meeting Minutes

The Reserve Bank of Australia Monetary Policy Meeting Minutes are published two weeks after the Reserve Bank of Australia interest rate decision. The RBA Meeting Minutes give a full account of the policy discussion, including factors that influenced policy makers decision and differences of view amongst RBA members.

∙       The AUDUSD pair is bearish while trading below the 0.6880 level, key technical support is found at the 0.6750 and 0.6660 levels.

∙         If the AUDUSD pair trades above the 0.6880 level, buyers will likely test towards the 0.6912 and 0.6960 levels.

Wednesday 21st August, USD FOMC Meeting Minutes

The Federal Open Market Committee Meeting Minutes gives some of the best insights into the Federal Reserve’s monetary policy decision-making process, and how the Federal Reserve currently thinks about economic developments inside and outside of the United States economy. The FOMC organize eight meetings in a year to give a clear guide to the future US interest rate policy.

∙        The USDCHF pair is bullish while trading above the 0.9780 level, key resistance is found at the 0.9840 and 0.9890 levels.

∙         If the USDCHF pair trades below the 0.9780 level, sellers may test towards the 0.9710 and 0.9670 support levels.

Thursday 22nd August, USD Manufacturing PMI

The United States Manufacturing PMI reports on Manufacturing activity inside the American economy and represents economic indicators derived from monthly surveys of private sector companies. PMI data provides advance insight into the private sector economy by tracking variables such as output, new orders, employment and prices across these key sectors.

∙         The USDJPY pair is bullish while trading above the 107.00 level, key resistance is found at the 107.30 and 108.00 levels. 

∙         If the USDJPY pair moves below the 107.00 level, sellers are likely test towards the 106.00 and 105.00 support levels.

Friday 23rd August, USD Jackson Hole Economic Symposium

Jackson Hole Economic Policy Symposium is an annual symposium sponsored by the Federal Reserve Bank of Kansas City since 1978, and held in Wyoming, America. The forum is seen as a way for central bankers, policy experts and academics to come together to focus on the global economy. Central bank speeches at Jackson Hole can have a huge impact on the US dollar and equity markets.

∙         The GBPUSD pair is only bearish while trading below the 1.2080 level, further losses towards the 1.2020 and 1.1980 levels remains possible.

∙         If the GBPUSD pair trades above the 1.2080 level, buyers are likely to test towards the 1.2200 and 1.2250 resistance levels.