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 4
The economic calendar is mostly empty today, that is why it’s recommended to trade on the market sentiment.
At first, let's start with the fresh Brexit news. Yesterday, the House of Commons passed a bill, which would force the British Prime Minister Theresa May to seek an extension beyond April 12. The bill will require May to get the approval by the parliament for any delay and allows lawmakers to propose the length of the extension. The next focus will be on the debates of the legislation in the House of Lords. Reportedly, it can happen today. Any positive news on the progress will push the British pound up.
Also, the trade talks will continue today. US president Donald Trump will meet with Chinese Vice Premier Liu He to discuss the final stages of trade negotiations at 23:30 MT time. Analysts expect US president to announce plans for a summit with the Chinese President Xi Jinping and express his opinion on the conclusion of trade talks. Positive comments will push the risky assets up.
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.