Why Is This Week So Important For USD?

Why Is This Week So Important For USD?

Euro traded lower versus the greenback after last week’s ECB Rate Decision. The European Central Bank left interest rates on hold last Thursday and reiterated that they will remain unchanged until at least summer 2019. Also, the ECB formally ended its 2.6 trillion euro crisis-fighting bond purchase scheme.

In the upcoming week, we will focus on the Fed Rate Decision and the final GDP growth for Q3 in the US. 

The Fed is scheduled to hold its policy meeting on Thursday. The market expects that the Federal Reserve will raise interest rates by a quarter point, which would be the fourth hike this year. Trades are focused on how much further the tightening cycle has to run. If the Federal Reserve projects a more aggressive interest rate hike, the greenback would rise sharply.

The US GDP for the third quarter will be published on Friday. It is expected to come out at the annual rate of 3.5%, the same as the previous month. A better than expected result will support DXY and bond yields in the US. In addition to US GDP Data; Durable Goods Orders, Housing Starts, Building Permits, NY Empire State and Philadelphia Fed Manufacturing Index will be also closely followed by traders.