In the world of Forex, information is power, and news and data releases are your guiding light. Just as a captain relies on their compass at sea, traders and investors rely on timely news to steer their course in the market’s vast ocean. These updates aren’t just headlines – they’re the keys to unlocking hidden opportunities and making informed decisions.
According to Daily Forex, in the second week of August 2023, here are some important news and data releases you can consider highlighting in your weekly trading!
Market Sentiment Gets Weaker Amidst Correction
The market mood is becoming less optimistic, partly because many feel that recent market gains might need to take a break. This trend of market correction seems to be continuing. Another factor is that it’s now August, a time when people tend to be a bit less hopeful about the market.
Currently, there’s not much else to discuss about the market. It’s possible that after this period of prices going down, the market might start to rise again like it did in the past few months. But because of how things usually go at this time of the year, this might not happen until September.
US Inflation Data
Last week, a major highlight in the Forex market was the release of US Consumer Price Index (CPI) data, showing an annualized rate of 3.2%. This number matched what most people expected. Also, all the other related data matched predictions, meaning that traders had already considered these details when making their market decisions.
Risky Asset Selloff and US Dollar Strength
Last week, there was a persistent decline in more risky investments, particularly in technology stocks. During this period, the US Dollar gained strength, being sought after as a safer option. It’s probable that this trend will persist until the release of the US Federal Open Market Committee (FOMC) Meeting Minutes on Wednesday. These minutes could provide valuable insights into the Federal Reserve’s discussions about interest rates.
Last Week’s Data Releases
- US Producer Price Index (PPI) – The US PPI data showed a slight increase of 0.3%, surpassing predictions. This hints that inflation might be a bit more robust than what the previous CPI data indicated.
- Chinese Consumer Price Index (CPI) – China’s CPI, a measure of inflation, performed slightly better than anticipated, revealing a yearly contraction of 0.3%.
- UK Gross Domestic Product (GDP) – The UK’s GDP surpassed expectations, displaying a monthly growth of 0.5%, compared to the predicted 0.2%.
- US Preliminary UoM Consumer Sentiment –The preliminary UoM consumer sentiment data from the US aligned with expectations.
- US Unemployment Claims – The US unemployment claims data remained in line with forecasts.
- New Zealand Inflation Expectations – Inflation expectations in New Zealand met the expected values.
Disclaimer
The news presented on Prime Codex is solely those of the analysts quoted. They do not represent the opinions of Prime Codex on whether to buy, sell or hold specific pairs. Traders are advised to conduct their independent research before making an investment decision.
