Last Week’s Update and GDP Events
The United States, Canada, and leading Eurozone economies, Germany and France, are to release their latest GDP figures this week.
Japanese Yen Leads in a Quiet Week for Major Currencies
The Yen outperformed the other leading major currencies as the market experienced a rather quiet few days. The JPY took an early lead despite poor figures in the country as the Covid-19 pandemic continues to affect the economy. However, the JPY had a substantial gain of 1.13% against the EUR and another 1.01% against the CHF last week. The Yen recorded lesser gains against other leading currencies, including the Greenback, the Aussie, the Kiwi, the Sterling, and the Canadian Dollar.
The worst-performing currency of the week went to the Euro. The Eurozone currency sustained massive losses against the other major currencies, losing out massively against the JPY and CAD. It also records losses against the USD, NZD, GBP, AUD, and the CHF. The decline in the value of the shared currency was due to a spike in the number of new Coronavirus cases in Italy, Spain, France, and other major Eurozone economies. At the moment, the ECB declared that September would be the critical month to read the economy and know whether it is genuinely recovering.
The US Dollar had an average week, outperforming other major currencies except for the JPY, CAD, and the GBP. Much of the talk is regarding the upcoming November elections, with little discussions about the economy.
Although August is famous for being a slow month in the Forex market, the Forex Signal Trading Team sent a signal on August 17th to buy the GBPUSD at 1.3109. All three Take/Profit targets reached and the trade moved a maximum of 125 pips from the Entry Point.
Weekly Forex Forecast
This week will see the US, Canada, Germany, and France release their GDP figures as the world slowly recovers from the ongoing pandemic’s economic effects.
Bank of Japan Core CPI: Tuesday
This is the preferred inflation meter of the Bank of Japan. Hence, investors will be monitoring the figures carefully. In the last reading, the index went up to 0.1% from the previous 0.0%. However, not much GDP change is expected in the June release.
German GDP: Tuesday
The German economy, similar to others in the Eurozone dipped by 10.1 in the second quarter of 2020, showing the enormous damage of the pandemic. The final reading is expected to confirm what was initially released.
US GDP: Thursday
The first Q2 GDP estimate for the United States saw a massive loss of -32.9%. The second reading is expected to be around -32.5%, a figure that would likely mute the market.
French GDP: Friday
In France, the last release of the Q2 growth data was sparse, forecasting a decline of -13.2%. The second French GDP release is expected to confirm the initial figure.
Canada GDP: Friday
The Canadian government publishes its GDP figures monthly. In May, the Canadian economy grew by 4.5%, a massive rise from the 11.6% decline experienced in April. Experts expect another gain for Canada in June, with an estimated growth of 5.2%.