Forex market outlook week-2; Sept 9 - 13
Investors will undoubtedly be watching this week’s European Central Bank meeting, in addition to developments around Brexit as well as the intensifying U.S. - China trade war amid heightened concerns on the growth outlook for that global economy.
The U.S. dollar was holding above one-week lows against a currency basket on Friday following a mixed U.S. jobs report for August reinforced the view of the slowing expansion and likelihood of more interest cuts from your Federal Reserve.
Fed Chair Jerome Powell did little to improve those expectations. At an overseas event on Friday, he cited risks specifically U.S.-China trade tensions that could derail the current U.S. economic expansion, that is the longest one on record.
Interest futures still implied traders positioned for any quarter-point rate decrease in the Fed’s Sept. 17-18 policy meeting following Investing.com’s Fed Rate Monitor Tool.
“We will become appropriate to sustain the expansion,” said Powell on the panel in Zurich.