How Energy Crisis Affects German PMI August 23, 2022, 10:30 GMT+3 Germany will publish Flash Manufacturing PMI data on Tuesday, August 23, at 10:30 MT time (GMT+3)…
Daily News: mixed moves
- The US dollar index has been showing mixed moves. On Friday, it surged to highs of July 2017. Monday trading shocked with a plunge below 95.50. However, up to now, the index has been climbing to 96.50 again. A high volatility of the USD creates significant moves in the market. The US dollar index needs a strong support to stick near 96.50. That’s why further moves are anticipated to be highly volatile. The resistance is at 96.50. The support is at 95.
- Although the US dollar index has been recovering after the yesterday plunge, most of the major currencies are appreciating against the USD.
The GBP/USD pair has been trying to recover. We have already got Tuesday economic data. The figures are mixed, but the decline in average earnings index data is a negative signal for the pair. GBP/USD has tested the resistance near 1.2830, but the weak data doesn’t let it rise further. If the USD keeps strengthening today, there are risks of the fall to the support at 1.2720.
- NZD/USD has been climbing to the resistance at 0.6635 (the pivot point). To get chances for recovering, the pair needs to break above the pivot point. However, the trading isn’t extensive and the USD is rising, so chances to break above 0.6635 are low. The pair is anticipated to keep trading within 0.6535 (the trendline) – 0.6635.
A forecast for the RBNZ interest rate:
Westpac forecasts a rate hike in May 2020 instead of November 2019. Moreover, the bank gives one of three possibilities of a rate cut. However, it expects that improved economic data won’t let the central bank to cut the rate.
- The Australian dollar keeps suffering for the fourth day. No important economic data will be out today. As a result, risks of the fall of AUD/USD to 0.7230 are high.
- Some political news. South Korean President will go to Pyongyang for a meeting with North Korean President in September. Let’s see where parties will come. But positive signals should pull the yen down.
- Bitcoin has tested below $6,000. However, it’s not only the major cryptocurrency that suffered but other digital currencies as well. If Bitcoin closes below $6,000 today, the next support will lie at $5,600. In case of a recovery, the resistance is at $6,360.
That’s all for today! Follow market news with FBS!
Russian-Ukrainian conflict is influencing every economic aspect…
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.