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)…
Trade ideas for June 21-26
The US central bank turned the market upside down. It signaled that higher inflation is a concern and that it’s considering tapering policy. The USD soared versus other major currencies, while gold headed for the biggest weekly loss in 15 months. Let’s see what new moves await us this week!
The outlook for the USD is now strong, so levels below 1.20 may be more appropriate for EUR/USD. Traders will continue monitoring comments from the ECB and the Fed that are expected on Monday and Tuesday, Wednesday, and Thursday respectively. Overall, it won’t be easy for EUR/USD to recover.
The British pound will be in the center of the market’s attention not only versus the US dollar, but also against the euro, the yen, and other currencies as everything will depend on the Bank of England’s policy statement that will be out on Thursday. If the UK central bank follows the path of the Federal Reserve and acknowledges economic recovery and inflation, the GBP will recover. Otherwise it will fall.
The yellow metal dropped below $1800, as the Fed’s talk about policy normalization makes gold less attractive to investors. XAU/USD will remain under pressure as long as the price is staying below $1855. Market players will likely keep selling gold on recoveries.
At the start of last week, Brent rose to the highest levels since 2018 above $73 a barrel. Then there was a correction down on the Fed’s press conference. Still, global economic recovery and rising demand are going to keep the price supported, so the idea is to keep looking for buy opportunities.
The following information is not investment advice. Remember that trading is risky. Manage your funds carefully and remember that you can use Take Profit and Stop Loss orders to maximize your gains and limit your losses.
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.
Every week we expect many interesting events that can shake the market.