The main event of the week will be the US Federal Reserve System representatives meeting. It is expected that the FRS will announce the end of the third program of bond purchases. The Economic calendar also contains the data in the consumer sector, house price data and economic growth during the summer in the USA. The experts of Masterforex-V World Academy /www.masterforex-v.com/ learned five basic economic data and news that can boost or weaken the dollar.
5 key events in the economic calendar this week
1. It is expected that there will be the quantitative easing minimizing in the USA.
The FRS is going to meet on Tuesday and Wednesday. Market participants' expectations are high. It is likely that politicians will vote for the reduction of bond-buying program. The end of the bond purchase program will allow investors and traders to focus on the time of the first rise in interest rates from the FRS.
2. Two sectors for close analysis in the GDP report.
The US Commerce Department will release the report on gross domestic product for the third quarter on Thursday. Economists forecast that real GDP grew by 3.1% at an annualized rate compared to the summer period. Despite the fact that this rate would be slower than theincrease by 4.6% for the second quarter, the data will be better in comparison with the average growth rate of 2.2% per year. Two key economic sectors in the report - are the sectors of foreign trade and stocks, for which there are data only for August. A significant change or revision of one of the indicators may change the difference between the projected and actual growth of GDP.
3. Consumers will indicate their expectations for the US economy.
Conference Board and Reuters with the University of Michigan released a study of consumer sentiment. It is about how the consumers look at the prospects for the US economy, the labor market and personal finance. Economists expect that on Tuesday, the index will rise to 87.0 regarding the September index of 86.0, while the index of consumer sentiment from University of Michigan on Friday is expected to be unchanged at the level of preliminary reading of 86.4. The prices lowering for gasoline and low unemployment contribute to consumer optimism, despite the volatility on the stock market, cases of Ebola disease in the US and the geopolitical tensions.
4. The slowdown in housing prices growth may be a positive indicator in general.
The housing prices growth in the USA weakened. The cost of homes grew only by 5.6% per year in the current year in July, as it was said in the report of S & P / Case-Shiller. Economists expect the slowdown in prices will continue in August. The data will be released on Tuesday. However, the cost of housing slowdown is not as anxious or bad. The homeowners’ revenue growth will slow, however, more buyers will be able to afford to buy a home.
5. Costs, revenues and savings in September.
On Friday, there are data on personal income and spending in September. Economists expect modest revenue growth by 0.3% compared with the rising costs by 0.1%. This will keep the growing trend after declining in August to 5.4% from 5.6% in July.
Dollar exchange rate recovers the morning losses on Forex.
The experts of Masterforex-V World Academy /www.masterforex-v.com/ analyzed the hourly chart of the dollar index on Forex.
On the analyzed graph of midterm period since October, 21st, there was a strong growth of the dollar index against the currencies of the countries - major trade partners of the United States. On the level of the local minimum near 84.74 the dollar index was able to rise to the local maximum near 85.94. But then, the rise of the dollar was slowed.
After the failure of the dollar rate to break through the resistance level near 85.94 last week, its correctional attenuation began and reached the local minimum near 85.46 today. Then, the rise of the dollarcame and the price moved above the fast moving of average order 21, as it is shown in the graph in green. The price restructuring above the average of the 55th order in orange and the break through of the resistance near 85.76 will confirm the seriousness of intent to continue the growth of the dollar in the basket of six other currencies. Target level of growth can be a region of strong resistance near 85.94. This embodiment is illustrated in the graph with orange arrow. In general, the corrective decline of the dollar may fail if prices fix above the downward sloping channel MF marked with red dotted line. If the dollar rise continues, this trend will likely continue in the medium term perspective.
If the rise of the dollar meets the resistance near 85.76, the corrective weakness of the dollar and the transition rates in the chart below MF sloping channel may contribute to the continued decline in the area 85.46and below to the area of 85.23 after overpassing the support from the slow moving average of the 255 period shown in blue.
The experts of Masterforex-V World Academy /www.masterforex-v.com/ will keep you informed of statistical data from the foreign exchange market. In our articles you can also find the analytics’ comments on the situation on the market as well as their forecast.
