Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Market updates on August 5
Key events ahead:
American ISM Non-Manufacturing PMI – 17:00 MT (14:00 GMT) time
The weekend was hurtful for the market sentiment with the updates from the Chinese side. While Hong-Kong press informed that China questioned the chance of trade talks' continuation with the US, Beijing asked State buyers to halt US agricultural imports. It resulted in the risk aversion in the markets.
- USD/CNH has risen to the record highs above the 7th level and created resistance at 7.1050. If the Chinese yuan is supported, the first key level will lie at 6.9680. After that, pay attention to the next support levels at 6.9360 and 6.9270.
- As risk-off sentiment intensified, gold moved higher to the resistance at $1,473 on H4. In case of reversal, pay attention to the $1,448, $1,436 and $1,421 (100 and 50 period SMA)
- USD/JPY jumped to the lowest levels since January's flash crash. The first support for the pair lies at 105.65. After that, pay attention to the 105.3 level. If bulls take over the market the first resistance will lie at 107.45. After the break of this level, reaching the resistance at 107.79 will be possible.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Last week was super intense! Geopolitical turbulence made the Russian ruble the most volatile currency. Gold rose and fell by more than 8000 points each time.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.