What to Trade on August 22–26?
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)…
Oil Reached 2018 Highs, German Elections Affect Euro
Latest news
- Commodities (iron ore, oil) and commodity-linked currencies (AUD, CAD) surged. West Texas Intermediate has reached $75 a barrel, while Brent rose to the highest mark since October 2018.
- Oil has grown by over 80% since April 2020 as the global demand recovers after the Covid-19 crisis. ING says oil ‘continues to be supported by broader concerns over tightness in energy markets’. Citigroup remains “outright bullish” on crude oil as well as gas.
- The euro is falling at the start of the week amid the German election. There is no clear winner so far. Olaf Scholz of the Social Democrats stepped ahead of Chancellor Angela Merkel’s conservatives.
- In the US, House Speaker Nancy Pelosi is going to pass a $550 billion infrastructure bill this week. It should be good for the US stock market. S&P 500 has been rallying up for the fourth day in a row.
Tech outlook
EUR/USD seems weak. The pair is likely to reach the lows of August 19 at 1.1670, if it breaks through the psychological mark of 1.1700. On the flip side, if it manages to jump above the recent high of 1.1740, it may rally to the 50-day moving average of 1.1775.
Gold has reversed up from the strong support level of $1750. It lies at both the lower line of the triangle pattern and the 100-day moving average. It may reach the resistance level of $1780 soon if the uptrend continues. The jump above it will push the pair up to the psychological mark of $1800.
USD/JPY has jumped above the resistance level of 110.50 and pulled back. Indeed, the rally was quite fast and the pair needs a break. It can be just a short sell-off before further growth to 111.00. Support levels are 110.50 and 110.00.
Similar
Geopolitical News Influence Markets
Russian-Ukrainian conflict is influencing every economic aspect…
Market Outlook For February 21-25
Last week was full of surprises! The US dollar plunged despite a better-than-expected retail sales report…
Latest news
Assets Won’t Survive This Week
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Post-Fed Releases for USD & CAD Traders
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
FED and BOE Make Another Attempt to Beat Inflation
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.
