A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
Chinese data is full of surprises
China will publish manufacturing and non-manufacturing PMIs on December 31, at 3:00 MT time.
Instruments to trade: USD/CNH, EUR/CNH
Manufacturing and non-manufacturing PMIs are indicators that show how businesses in China see the current situation in the industry. Their calculations are based on surveys of a big number of purchasing managers in the manufacturing and services industries. If the index is bigger than 50, the industry is expanding. Alternatively, if the index is lower than 50, the industry is contracting. Besides indicators' direct impact on the Chinese yuan, these indicators tend to determine the risk sentiment during the Asian trading session. Last time, both indicators came out higher than the forecasts. While manufacturing PMI reached 52.1 (vs. the forecast of 51.6), non-manufacturing PMI rose to 56.4 (vs. 56 points expected). Despite that, the CNH weakened back then. This time, due to the lack of events and pre-holiday mood, the situation may be completely different.
- If the indicators are higher than the forecasts, the CNH will strengthen;
- In case of an alternative scenario, CNH will weaken.
The US showed strong retail sales for August despite the spread of the Delta virus strain. As a result, the US dollar rocketed and gold dropped by 2286 points in half an hour after the release.
Canada will release its inflation rate in different forms, including Common, Median, Trimmed, Core, and All items CPI on September 15, 15:30 GMT+3.
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).