Market outlook for this week
Jump in to know the key market events and trading ideas for this week!
How to trade on June 23?
Fundamental factors
- Trump’s adviser Peter Navarro roiled the market. He said that the US-China trade deal is over during the interview by Fox News. Stock dropped
- Later, the US president calmed the market’s participants down. The phase one agreement of the trade deal is enforceable. Both sides officially claimed that they intend to stick to the deal.
- That situation has proven that the US-China relationship is still one of the key drivers of the market.
- The Australian Manufacturing PMI tuned out 49.8, it was better than analysts expected. That data encouraged investors as above 50.0 indicates industry expansion. AUD jumped.
- The Japanese Manufacturing PMI came worse than forecasts. JPY loosened.
Technical tips
S&P 500
Most analysts don’t expect another pullback this week. S&P 500 is headed towards new highs. It has just passed 3110. If bulls are as strong as most anticipate, the stock index will surge to 3225. Support levels are 3020 and 3000.
AUD/USD
The AUD/USD rose on the positive industry data. If it crosses the resistance at 0.6950, it will open doors toward the June high at 0.7020. Nevertheless, if risk-averse returns, the pair will slump to 0.6800.
USD/JPY
The Japanese yen weakened against the US dollar on the poor PMI data. The 50-day moving average at 107.40 is a key resistance that the pair struggles to break. If it crosses it, it will soar to 38.2 % Fibonacci level at 107.85. Support levels are 106.80 and 106.00.
WTI oil
The WTI oil price has reached the three-months high. It has crossed $40.5 a barrel. Now it’s moving up towards the early March highest point at $47.5. Support levels are $36 and $32.
To trade WTI with FBS you need to choose WTI-20N.
Upcoming news today:
- The French, German and EU PMI will be released at 10:15, 10:30 and 11:00 MT time, respectively.
- The UK PMI will be reported at 11:30 MT time.
- The US PMI will be published at 16:45 MT time.
Similar
Market sentiment slightly improved
USD’s rally takes a pause, while riskier assets are modestly rising.
US earnings in January 2021: what you need to know
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
Latest news
Stocks up, USD down
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
Lots and lots of PMIs on Friday
PMI reports from the EU, the UK, and the USA will be released during the day!
ECB report is in focus
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
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