For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
Trading plan for April 24
Markets show significant one-way movements as the US dollar is continuing to strengthen.
North Korea announced its willingness to suspend nuclear programs, so geopolitical tensions weakened influencing the dollar’s rate.
The geopolitical issues eased and the USD/JPY pair has climbed further. The pair is moving to the 38.2 Fibonacci retracement level at 108.50. If no crucial events happen in the political and economic arena, the pair will be able to break above it. The next psychological level for USD/JPY is at 109.
Although the European economic data were quite good, they could not support the euro, so the euro continued to depreciate versus the greenback. On April 26, the European central bank will hold a press conference. Any hawkish sounding comments will be able to support the euro. Until then, if the pair closes below the daily Ichimoku cloud, the support will lie at 1.22. The next support is at 1.2180.
GBP/USD started declining on April 17 and continues until today. No important data for the pound is anticipated in next few days. So the support lies at 1.39.
The Australian dollar is suffering a lot. The AUD/USD pair has reached the lowest level since the end of 2017. Tomorrow CPI and Trimmed Mean CPI data will be released. A forecast is not encouraging. If actual figures are weak, the aussie will plunge further. The support is at 0.7608. The next level is quite far at 0.7562.
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The higher prices seen today are generally related to the pandemic, that’s no doubt. US consumer prices jumped in October at the fastest pace in three decades putting the Biden administration on the defensive and increasing prospects that the Federal Reserve will raise interest rates next year. Jerome Powell says Fed will discuss speeding up bond-buying taper at the December meeting. What does it mean for markets?
It seems like most of the assets have joined Black Friday's sell-off with global indices, risky currencies, and commodities going down.
Gold is about to break the most significant support. The US dollar index keeps gaining momentum. However, the situation might change this week, and we might see a tiny correction. Investors might return to risk-on and push the US stock market indices and cryptocurrencies to the upside. These and more trade ideas are in our new weekly video! Do not miss it!
This week is likely to be pivotal for many assets, including gold, USD, and several stocks. However, we need to be focused and react fast to the ever-changing environment to get the most from it.
This week, the majors will be affected by the interest rate decision by the Federal Reserve, NFP, the BOE Meeting, and more events.