Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Forex, oil, gold, and stocks on April 4-8
Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. Let’s see what awaits traders this week!
In the economic calendar, the main events are the meeting of the Reserve Bank of Australia and the release of the FOMC meeting minutes. The RBA may leave its interest rate at 0.1%. As a result, it may be difficult for AUDUSD to rise above 0.7550. The pair risks sliding to 0.7300. As for the USD, so far, comments of the Fed members have boosted it, although March highs still limit the advance. USDJPY met significant resistance at 125.00, the highest level since 2015. EURUSD may swing around 1.0950.
Oil & Gold
Oil producer group OPEC+ stuck to modest output hikes. At the same time, the US decided to release 1 million barrels a day for six months from reserves. The oil supply is increasing, and it helps to cool down the elevated prices. XBRUSD formed a second top at 120.00. The critical level to watch on the downside is 95.00. In XNGUSD, a correction to 5.30/5.00 is possible.
For gold, the most important level is 1900. If the price settles below it, it would mean a top and a decline to 1870. On the upside, the advance above 1950 is necessary to open the way higher. Uncertainty and lower economic data in major economies will keep supporting gold.
American stock market had a good March. US500 managed to rebound from lows. Is that enough for the big uptrend to resume? Only time will tell. Ukraine, the isolation of Russia, and the Fed’s plans to raise interest rates are the major risks for the index. If it fails to stay above 4600, the target will be 4300. Among particular stocks, Tesla is the bright spot of the market after the opening of Berlin ‘Gigafactory’ and a talk about a potential split. Resistance for Tesla is at 1170. In addition, Apple stock just posted its longest winning streak since 2003. Be ready for a setback to the 172.00 area.
The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.