Market Analysis

Forexmart's Market Analysis section provides up-to-date information about the financial market. The overviews are intended to give you an insight into current trends, financial forecasts, global economic reports, and political news that influence the market.

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September 20, 2020 07:39 am

Fundamental Forex Forecast for the week of September 21-25

Monday, September 21


On Monday, the macroeconomic calendar is completely empty. Exactly like almost the entire coming week. Most likely, market participants will have to navigate the information background, especially on the Brexit issue. The negotiation process on a trade agreement can promote both the growth of European currencies and their decline.


In the evening hours, one should pay attention to the speech of the head of the US Federal Reserve, J. Powell.


Tuesday, September 22


Tuesday will begin with a speech by the head of the Bank of England. In addition, the data on home sales in the US secondary market, which should grow by 13.0% to 6 million, will be of interest. And this is the last one of Tuesday's news publications.


Wednesday, September 23


Wednesday will be the busiest day of the week as PMI data for many countries is released. Australia will present its statistics first: all indices should decline, which will negatively affect the Australian dollar. Data from Japan may show an increase in indicators, however, the yen, as a rule, is weakly dependent on its own macroeconomic statistics.


The euro is likely to come under pressure as business activity in Europe should decline. A similar situation is expected in the UK, so the pound will have to give up its positions. The United States may also show a decline in PMIs.


Thursday, September 24


Thursday kicks off with September IFO business climate data in Germany. Experts predict an increase in the indicator from 92.6 to 93.8 points, which will support the euro.


The main event of the day will be data on applications for unemployment benefits in the United States. The number of applications is expected to decrease from 860 thousand to 845 thousand. If the forecasts justify themselves, the dollar will receive some support, since such data signal a further recovery of the labor market. Also of interest will be statistics on new home sales in the United States.


Friday, September 25


Friday will start with a rise in the dollar, which should be supported by data on durable goods orders in the US, the volume of which could rise by 2.0%. This suggests that in the near future we should expect an increase in retail sales, as well as industrial production. This trend signals a stable recovery of the American economy, and will also contribute to the strengthening of the dollar.


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