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)…
Stock Market Recovers, Fed Meeting Is Eyed
- A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
- The day has started with the detailed record of the Reserve Bank of Australia’s last meeting. The bank warned about the slow rebound from lockdowns and claimed it wasn’t going to increase the cash rate before 2024. This is actually negative news for the Australian dollar. However, AUD/USD has surged at the start of the day driven by the overall risk-on sentiment.
- All eyes are on Wednesday’s Federal Reserve meeting. The US central bank is expected to start laying the groundwork for scaling back stimulus. If it hints at tapering, it will push the USD up.
- China’s assets are touching the dips driven by worries over Evergrande, the Chinese second-largest property developer by sales. The company’s stock dropped at the weekly opening by over 10%, as the company faces financial problems: its liabilities reached $305 billion.
- Gold has started recovering, ending yesterday with gains in the 1760 level. Crude oil prices are edging higher as well.
EUR/USD has failed to cross the support level of 1.1710, which it struggled to break on March 30 and August 10. Watch the breakout of 1.1750. If it happens, EUR/USD is likely to surge to the 50-day moving average of 1.1800.
Gold has reversed up from the 100-week moving average of $1755. If it manages to break above the 23.6% Fibonacci retracement level of $1770, it will rocket to the psychological mark of $1800. On the flip side, if it reverses down from the resistance level of $1770, it will fall to the low of March 28 at $1730.
USD/JPY is moving inside the ascending channel. It is likely to bounce off the lower line at 109.30 and jump to the recent high of 110.00. Support levels are 109.30 and 109.00.
Last week was full of surprises! The US dollar plunged despite a better-than-expected retail sales report…
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
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.