Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
The risk-on sentiment pushes USD/JPY and USD/CHF higher
The trade talks between the US and China have been optimistic for now. Reportedly, China has agreed to buy record volumes of pork from the United States. Also, Chinese Vice Premier Liu He said that China was willing to reach an agreement to prevent further escalation of the trade war.
- USD/JPY broke the upper border of an ascending trendline and tested the 107.96 level. The next resistance will lie at 108.07. If the pair reverses, it will face the support at 107.54 (100-period SMA). After that, the next support will be placed at 107.35.
- USD/CHF tested the highs above the 0.9965 level. If this level is broken, the next resistance will lie at 0.9985. From the downside, support levels are 0.9925, 0.9917 and 0.9907.
The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.