The American dollar continued on its strengthening mission, but what happened to the British pound? Economic data and risk fundamentals primarily dominated forex news prediction to produce the top and worst performers of the week.
Forex News Prediction Weekly Review
Risk sentiments played a significant role in the G7 fx currencies performance in the second week of September.
Negative Global Sentiments
Early in the week, negative vibes emerged from Brexit talks uncertainty, the US equity market weakness, and poor economic report in some parts of the world. A drop in oil prices also contributed significantly to the negative sentiments. The negative sentiments triggered risk aversion measures in the forex market to favour safe-haven currencies.
The coronavirus infections continued spikes in the week of September created more fears in some parts of the world. A high rebound of the infections recorded in India, parts of Europe, Great Britain, and several US states undermined the g7 currencies’ performance. The resurgence of the virus dampened economic recovery efforts and oil demand.
Economic Data
The G7 countries released their economic data, which affected the forex news prediction of the g7 fx currencies. GDP, production, manufacturing, retail sales, trade, and consumer confidence include the released economic statistics updates.
An improved economy supports a country’s currency, whereas economic reports of other countries affect commodity-related assets.
Economic Review Of The G7 Currencies
Table: G-7 performance summary.
| Currency Pair | 7th Sept | 13th Sept | Average Price | Percentage Change | Remarks |
| USD | 92.719 | 93.320 | 93.214 | 0.648 | increase |
| GBP/USD | 1.3166 | 1.2793 | 1.2950 | 3.6817 | drop |
| EUR/USD | 1.1817 | 1.1849 | 1.1818 | 0.0971 | drop |
| USD/JPY | 106.25 | 106.19 | 106.15 | 0.03 | drop |
| CHF/USD | 0.9159 | 0.9092 | 0.9123 | 0.4271 | increase |
| AUD/USD | 0.7274 | 0.7283 | 0.7262 | 0.0549 | increase |
| USD/CAD | 1.3096 | 1.3185 | 1.3170 | 0.9494 | increase |
| NZD/USD | 0.6690 | 0.6664 | 0.6660 | 0.8333 | drop |
USD
It was yet another week for the usd news to lean in the green amid a quiet economic upfront. In the second week of September, the greenback increased by 0.66% to close at 93.333. In the previous week, it had risen by 0.65%.
The usd news was primarily driven by a few economic data skewed to the positive. Inflation figures eased less than earlier projected while the manufacturing sector rose by 6.3%. But despite being below target, GDP figures did not disappoint either. According to the American Bureau of Labor usd news, the US job openings surged to 6.6 million.
Negative global fundamentals uplifted the greenback’s forex news prediction. The negative vibes triggered by Brexit talks fears, the US equity market slump, and discouraging economic outlook from Japan and Australia.
The Biggest Loser (gbp/usd)
While the American dollar was gaining strength, gbp/usd experienced a rough week, to emerge as the top loser. The pound tumbled by 3.64% to close at 1.2796 down from a previous week’s loss of 0.55% in the week.
Brexit stalemate and the resurgence of coronavirus in the UK drove the sterling pound downwards. Additional damage came on the announcement of an impending reintroduction of covid 19 lockdown measures, effective 14th Sep.
Besides, the UK’s slow economic recovery process did not help the sterling pound anyway. Despite the earlier projection of 6.7% forex news prediction growth, the UK’s economy increased by 6.6%, diminishing hopes of a faster economic recovery.
A drop in the US technology sector prompted traders to move away from the riskier assets to purchase safe-haven currencies. The UK also suffered a drop in job openings over the week, complicating matters for the sterling pound. Worse still, the unemployment rate is expected to increase drastically over the coming weeks.
EUR/USD
The eurozone had a relatively busy week on the economic calendar. The economic data from the eurozone were skewed to the positive. Industrial production dropped by 0.9% while trade surplus widened. On a positive eur news forex trading, trade exports rose by 4.7% whereas imports dropped by 1.1%.
According to eur news forex, the Eurozone’s GDP went upswing but was not enough to support it. Negative global sentiments and the European Central Bank’s sentiments dominated eur news forex. Production, retail sales, and investor confidence levels increased producing the much needed boost for the euro.
On Friday, the ECB, Largade press conference, and monetary policy resolution dominated eur news forex pushing it down. The ECB hinted that the economic recovery would slow down by 8%. Also, Largate pointed out that the ECB would not target the forex market but instead watch the euro from a price stability point.
Somewhere In The Far East (
usd/jpy)
Economic data of Japan were the key drivers in the forex news prediction for the week. The Japanese economy contracted by 7.9%, while household spending reduced by 6.5%. Negative global risk sentiments and counter currency flow combined forces to affect usd jpy news.
According to the usd jpy news, more support for the yen came from positive data at the end of the week. The manufacturing sector rebounded from -52.3 to close at 0.10. However, covid 19 resurgences featured heavily in the usd jpy news, scaring investors away from the yen.
The yen fluctuated over the week but managed to close in the green. At the end of the week, the Japanese yen increased by 0.08% to close at 106.16, better than a drop in the previous week of 0.83%.
The Top Performer (chf/usd)
The chf/usd currency pair was the overall top performer in the second week of September, benefiting from negative global risk sentiments and ECB’s monetary policy.
A significant boost for the swiss franc came on Tuesday when technology companies in the US tumbled, pulling the stock index down. Switzerland’s unemployment rate increased slightly from 3.2 % to 3.3% but had no significant impact on this currency pair.
Towards the end of the week, the Swiss franc received another boost as traders risk aversion measures. The forex traders responded to Brexit uncertainty, coronavirus resurgence in some parts of Europe, and the slow global economic recovery to love the Swiss franc.
CAD/USD
Canada had a quiet week on the economic upfront, leaving Lonnie’s performance to the effect of a few economic data, monetary policy, and oil price forex news. In a press release, the Bank of Canada (BOC) maintained the interest rates but predicted a faster economic recovery from the covid 19 pandemics. This statement provided some leverage to the Canadian dollar.
On Tuesday, negative global sentiments affected forex news prediction to pressure the Canadian dollar downwards. The negative sentiments arose from the Brexit talks uncertainty, the US equity market weakness, and poor economic outlook in Japan and Australia.
According to forex news prediction, the Canadian manufacturing sector operated lower at 70.3% due to coronavirus containment measures. More pressure against Lonnie came from a drop in oil prices over the week. In the end, the Lonnie dropped by 0.90 to dilute the previous week’s increase of 0.28%.
The Lonnie received some support from the Canadian economic outlook and the monetary policies, but not enough to uplift out of the red zone. The bank of Canada maintained its rates while continuing with a $5 billion bond-buying recovery program per week.
Meanwhile, In aud Forex News
The Australian dollar fluctuated wildly over the second week of September. The Aud forex news performance was driven by counter currency flow and global risk sentiments as there were no significant economic activities in Australia. By the close of aud forex news, the Aussie increased by 0.03% to close at 0.7284.
Both business and consumer confidence indexes went upwards to support the Australian dollar. According to the Reserve Bank of Australia (RBA), business investment and consumer spending would Fastrack economic recovery of Australia, delivering much-needed support for the Australian dollar.
NZD/USD
NewZealand had a relaxed week on the economy upfront, with critical economic statistics skewed to the negative. Both retail sales and business index figures went downwards to add undue pressure on the kiwi dollar. Furthermore, retail sales dropped by 7.9% while the business index dropped from 58.8 to 50.7.
Negative global risk sentiments also weighed heavily against the kiwi dollar. The negative sentiment arose from the Brexit talks stalemate, the US equity market weakness, and poor economic reports from Australia and Japan.
The reintroduction of lockdown measures to contain coronavirus added more injuries to the NewZealand dollar. The kiwi ceded more grounds in response to the Reserve Bank of NewZealand (RBNZ) sentiments on September’s negative rates.
Conclusion
According to forex news prediction, the forex traders shied away from the riskier but profitable markets in favor of the low yielding greenback. However, the greenback was no match for the other safe-haven currencies – the Japanese yen and Swiss franc.
