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)…
Main market movements on August 6
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Let’s look at fundamentals, which may lead to the current situation on the market. Yesterday the US ISM Non-Manufacturing PMI came out 58.1, 1 point higher than the June report and also better than the expected 55.0.
The US ADP Non-Farm Employment rose only by 167 000, while analysts predicted 1.2 million. As a result, most investors foresee that NFP may be worse than the forecasts tomorrow. Gold is gaining on those expectations. It has just crossed the key resistance at $2 050. It will meet the next barrier at $2 100. Support levels are at $2 030 and $2 000.
There is some positive news on vaccine. The leading medical expert Anthony Fauci claimed that the US will have tens of millions of vaccine doses by the end of the year. Therefore, stocks surged.
The S&P 500 has approached the high of January 23 at 3 325. If it breaks it through, it may surge to the all-time high at 3 390. Otherwise, if the price changes its direction, it will meet the support at 3 270 and then at the low of July 28 at 3 210.
The US crude oil inventories contracted by 7.4 million barrels during the last week, beating all estimates. Oil prices went upward.
The WTI oil has got closer to the 200-day moving average. If it manages to cross it, it will surge to 43.50. The next resistance will be at high of March 2 at $47.50. Support levels are at the 50-day moving average at $39.50 and at $38.00.
The Bank of England left rates unchanged as expected. Moreover, the central bank increased its growth forecasts. The overall optimistic message pushed the British pound upward.
If GBP/USD manages to cross the 100.0% Fibonacci retracement level, it may jump to the high of December 13 of the last year at 1.3325. Otherwise, if it reverses from it, it will meet the support at the recent low at 1.3050.
Follow US unemployment claims report today at 15:30 MT time!
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
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.