USD Recovery Continued Last Week (Weekly Review)

Throughout the past week, speculators have reduced the number of previously opened short positions in the USD, and in these conditions, it was able to win back some of the lost positions paired with the EUR, GBP, CHF, JPY, AUD, and NZD. The Gold was subject to some pressure from sellers as wee, and it was actively bought up due to large-scale liquidity injections by world central banks.

Due to the decline against the USD, the EUR lost its strong support around the 1.1740 level, which led to its decline to 1.1613. Fears of a second wave of the coronavirus pandemic along with its spread in a number of European countries contributed to an increase in bearish pressure on the EUR, but another strong barrier passes in the area of last week's lows, which the bears are unlikely to break through without fresh negative factors for the EUR.

The declines in the AUD and the NZD have been maturing in recent weeks and were generally expected. In addition to technical factors, the negative for these currencies could have been added by the slowdown in the economic recovery of the PRC, and at this stage, only a possible weakening of the USD in anticipation of the presidential elections can contribute to their rebound upward.

Schedule for this week:

Monday, September 28
13:45 GMT - Eurozone. ECB President Lagarde Speaks.

Tuesday, September 29
23:30 GMT - Japan. Tokyo Consumer Price Index (CPI);
09:00 GMT - Eurozone. Business Climate;
09:00 GMT - Eurozone. Consumer Confidence;
12:00 GMT - Germany. Harmonised Index of Consumer Prices (HICP);
14:00 GMT - USA. Consumer Confidence.

Wednesday, September 30
23:50 GMT - Japan. Retail Sales;
01:00 GMT - PRC. NBS Manufacturing Purchasing Managers Index (PMI);
01:30 GMT - Australia. Building Approvals;
06:00 GMT - Germany. Retail Sales;
06:00 GMT - United Kingdom. GDP;
08:55 GMT - Germany. Unemployment Rate;
12:15 GMT - USA. ADP Nonfarm Employment Change;
12:30 GMT - USA. GDP (Q2);
13:45 GMT - USA. Chicago Purchasing Managers Index (PMI).

Thursday, October 1
22:30 GMT - Australia. AiG Manufacturing Index;
23:00 GMT - Australia. Commonwealth Bank Manufacturing Purchasing Managers Index (PMI);
06:30 GMT - Switzerland. Consumer Price Index (CPI);
08:30 GMT - United Kingdom. Markit Manufacturing Purchasing Managers Index (PMI);
09:00 GMT - Eurozone. Unemployment Rate;
12:30 GMT - USA. Continuing Jobless Claims;
14:00 GMT - USA. ISM Manufacturing Purchasing Managers Index (PMI).

Friday, October 2
01:30 GMT - Australia. Retail Sales;
09:00 GMT - Eurozone. Core Consumer Price Index (CPI);
09:00 GMT - Eurozone. Consumer Price Index (CPI);
12:30 GMT - USA. Nonfarm Payrolls;
12:30 GMT - USA. Unemployment Rate;
12:30 GMT - USA. Average Hourly Earnings;
14:00 GMT - USA. Factory Orders.

Author: Anthony Porter, IAFT Analyst