Last week witnessed many important forex news, as the US dollar fell against most of the other major currencies at the end of trading on Friday, and this came after weak housing data and declining consumer sentiment, which led to lower bets for the Federal Reserve to increase US interest rates.
The dollar index, which measures the strength of the US currency's performance against a basket of 6 major currencies, decreased by 0.3 % to reach the level of 97.14 at the end of trading on Friday. It is worth noting that the index ended the week's trading with a decrease of 0.1 %.
On the other hand, the home building index declined for the third month in a row during the month of May to reach its lowest level in 8 months, and this led to weak housing activity, which would weaken economic growth during the second quarter of this year.
The University of Michigan said in a report that consumer sentiment fell to 94.5 at the beginning of June from 91.1 in May, while analysts had expected 97.1.
These weak economic data affected the levels of the US currency and pushed it to decline against most of the other major currencies during the end of trading on Friday.
It is noteworthy that the US dollar had risen to its highest level in about two weeks after the Federal Reserve raised US interest rates for the second time this year, indicating the possibility of implementing the policy of gradual raising interest rates during the current year, if the economy reached the targets of growth, inflation and unemployment. The board also announced details of a plan to cut the balance sheet of $4.5 trillion in Treasuries and mortgage-backed securities.
In the monetary policy statement, the council stressed that the US economy is growing at a moderate pace, that the labor market is getting stronger, and that the decrease in the rate of inflation in the country is a temporary decline. at 2 %.
Traders are currently pricing the odds of the Fed lower than 15 % September, according to the Fed's watchdog, and the odds of a December increase was 35 %.
During this week, investors' attention will turn towards many forex news affecting the markets, which are represented in the speeches of the Federal Reserve officials, in order to know any indications about the future of monetary policy and the gradual raising of interest rates, through their comments, and market participants are also awaiting the issuance of many important statements about The US economy is represented by housing data, to gauge whether the recent decline in consumer spending and inflation translates into lower home prices and sluggish sales.
In the United Kingdom, investors are awaiting with great interest the start of official negotiations on Britain’s secession from the European Union, or what is known as (Brexit), in the Belgian capital, “Brussels”.
Here are the most important forex news expected this week:
Monday 19 June
British Foreign Secretary David Davis and EU chief negotiator Michel Barnier are set to start negotiations on the United Kingdom's formal separation from the European Union in the Belgian capital, Brussels. Dudley" and the President of the Federal Reserve Bank of Chicago, "Charles Evans" spoke.
Tuesday 20 June
Federal Reserve Vice Chairman Stanley Fisher, Federal Reserve Bank of Boston President Eric Rosengren and Federal Reserve Bank of Dallas President Rob Kaplan will also speak.
Wednesday June 21
The National Association of Realtors is scheduled to release several important statements on existing home sales.
Thursday June 22
The US is to release weekly data on initial jobless claims.