The Greenback crashed against its major counterparts last week. Can the bears maintain their momentum this week?
Here are events that could move the dollar in the next couple of days:
Preliminary GDP (Aug 29, 1:30 pm GMT)
An advance GDP reading showed the U.S. economy growing by 2.1% in Q2 2019, lower than Q1’s 3.1% uptick. That’s the weakest since Q1 2017, yo!
A closer look told us that it was strong consumer spending that boosted the economy during the quarter.
The continued strength of consumer spending helped dampen concerns about Uncle Sam’s growth miss. As a result, the dollar extended its uptrend and ended the week near its intraweek highs.
This week analysts expect to the second reading to only reflect 2.0% growth for the quarter. I wonder if the Donald will still think it’s “not bad.”
U.S. trade negotiations
After the dollar’s carnage last Friday, traders will wait to see if dollar bears can maintain their momentum this week.
In case you were too busy talking about Spiderman online, you’ll know that the U.S.-Chinese trade negotiations just got more complicated.
See, just as Powell was getting ready for his Jackson Hole speech, China announced that it would raise tariffs on $75 billion of U.S. products.
This prompted Trump to call on U.S. companies to look for countries other than China to do business with.
Word around is that the Donald might be considering declaring national emergency to address Uncle Sam’s trade war with China.
Keep your eyes glued to the tube so you don’t miss headlines that could move the dollar strongly in one direction!
Missed last week’s price action? Read USD’s price recap for August 19 – 23!