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 3
At first, pay attention to the trade negotiations between the US and China. Chinese vice minister will resume negotiations in Washington. According to the news sources, China has made significant progress during the last week’s negotiations and the sides have been working through the text of an agreement, that can be presented to the US and Chinese presidents. More news on the positive progress will push the risk-weighted currencies, such as the AUD, to the new highs. If any uncertainty comes out, it will result in risk aversion and, therefore, pull the risky assets down.
Also, pay attention to the Brexit news. Reportedly, the British Prime Minister Theresa May plans to discuss the new Brexit plan with the opposition leader Jeremy Corbyn. She is stick to the idea to ask the EU for an extension until May 22. The news supported the British pound. We need to follow the headlines today to see the further progress of the Brexit deal. Any disagreements will pull the GBP down.
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.
More reports, the start of a rally in crypto, outlook for gold and forex. This week is full of impactful releases, and we are here to trade on them.
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.