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 May 17
Trading on Wednesday was rather active and chaotic: in many pairs, there were some sharp intraday reversals. The US dollar strengthened versus some emerging market currencies like Brazilian real and Malaysian ringgit and remained strong versus others. Speculators continued closing their bullish positions on the euro. There are many sources of uncertainty at the market – global trade tensions, North Korea, Iran nuclear deal, clashes in Gaza, yet the safe haven currencies like Japanese yen failed to strengthen. Gold may find support at $1,284.37.
The main economic releases on Thursday will be Australian employment figures at 04:30 MT time (forecast is good) and New Zealand’s annual budget release at 05:00 MT time. During the US trading session, pay attention to the Philadelphia Fed manufacturing index and unemployment claims at 15:30 MT time.
AUD/USD rebounded from 0.7440. Above 0.75 the target will be at 0.7550. A daily close above 0.6910 will be positive for NZD/USD, but there will be resistance levels at 0.6935 and 0.6980.
EUR/USD made another leap down on Wednesday and got below 1.18. The euro negatively reached to a report that a likely future Italian government would seek $250-billion sovereign debt forgiveness from European creditors. The pair will have support at 1.1755. Only a decline below this level will bring the euro to 1.1700 and 1.1690. Resistance is at 1.1848. Above that level, the target will lie at 1.1910.
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.
Although the last week was intense, this one may be more dynamic and volatile. After the FOMC meeting and controversial decisions from the Bank of England, we saw a historical pound decrease, and the gold plunge. And there’s even more for you.
After the US CPI last week came out above the forecast, traders started expecting a 75-basis point rate hike…
In this video, we will talk about the potential change of a trend in the euro, another stock rally amid a global downtrend, gold prospects, and news that shakes the world right now. It’ll be a helpful video you don’t want to miss.