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This week, eyes will be on Fed Chairman Powell for clues on the next step in monetary policymaking.

Meanwhile, Congress is no closer to making a deal than it was weeks ago.

Feeling like trading the dollar this week?

I’ve listed down the market themes you can pay attention to:

Closely watched data releases

  • New home sales (Aug 25, 2:00 pm GMT) to dip by 4.6% after 13.8% jump in June
  • Core durable goods orders (Aug 26, 12:30 pm GMT), which hints at long-term spending for businesses, is expected to gain by another 1.7% after a 3.3% increase in June
  • Preliminary GDP (Aug 27, 12:30 pm GMT) – the second GDP estimate – is expected to be revised higher from -32.9% to -32.6% in Q2 2020
  • Initial jobless claims (Aug 27, 12:30 pm GMT), which went back above 1M last week, could “only” print at 940K this week
  • Annualized core CPE price index (Aug 28, 12:30 pm GMT) – the Fed’s preferred gauge of consumer prices – is estimated at 1.1% from a 0.9% reading in Q1 2020
  • Chicago PMI (Aug 28, 1:45 pm GMT) to decline from 51.9 to 47.5 in August

Jackson Hole speeches

  • The virtual version of the annual Jackson Hole symposium is expected to hint at monetary policy trends of major central banks during and immediately after the pandemic
  • Fed Chairman Powell’s anticipated speech is on Aug 27, at 1:10 pm GMT

Overall U.S. dollar demand

Technical snapshot

  • USD/CAD has reached Stochastic’s “oversold” levels on the daily time frame
  • USD may soon reach “overbought” status against NZD
  • The rest of the major pairs are near neutral levels
USD Forex Pairs Stochastic from MarketMilk
USD Forex Pairs Stochastic from MarketMilk
  • SMAs reflect a short-term bullish demand for the dollar
  • USD/CAD remains bearish against the short and long-term SMAs
USD Forex Pairs SMAs from MarketMilk
USD Forex Pairs SMAs from MarketMilk
  • The dollar has seen the most volatility against GBP, NZD, AUD, and CHF in the last seven days
USD Forex Pairs Volatility from MarketMilk
USD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read USD’s price recap for August 17 – 21!