Reasons behind the USD's advance, the earnings season in the United States, the outlook for EUR, JPY, Apple, Amazon, and more in this video!
Weekly Forex Outlook: January 14-18
What events are anticipated to make markets volatile?
The most important event of Tuesday is the Parliament Brexit vote. It’s worth reminding that previously the vote was scheduled on January 11. However, Theresa May canceled it because of the increasing risks of being defeated. No matter if the vote is postponed again or it takes place, the British pound will be under big pressure. Moreover, there are risks that the Parliament votes against the May’s plan that is highly negative for the British currency.
Also on Tuesday, traders should pay attention to the US PPI figure.
Wednesday’s British CPI data will become highly important for the British pound in times of Brexit uncertainties.
Thursday and Friday will be highlighted by G20 Meetings. Any comments during the meetings may turn markets upside down.
Also on the last day of the week, Canadian CPI and British Retail Sales releases will drive the GBP and CAD.
What about the technical side?
The direction of the EUR/USD pair will mostly depend on strength of the USD. During the last days, the greenback was quite weak because of the cautious tone of the Federal Reserve. If the economic data aren’t supportive, it will be difficult for the USD to recover. In case of the further fall of the US currency, EUR/USD will be able to break the resistance at 1.16. The next important level is 1.17. If the USD is supported by the economic data, the pair may suffer. The first crucial support will lie at 1.1340.
What are the crucial levels for GBP/USD?
To keep the upward movement, the pair needs to break above the resistance at 1.2883. Up to now, technical indicators signal the continuation of the rise, however, uncertainties around the Brexit deal may change the situation. If there is negative news on the Brexit deal, the pair won’t be able to strengthen the uptrend. The first important support is at 1.2578.
This week we will see two CPIs, five PMIs, and a dozen statements from banks governors from all over the world. Why do you need to follow these releases? Because it is a perfect opportunity for markets to gain volatility and for you to earn on this volatility.
This week, we will continue monitoring the developments in the stock and commodity markets as tensions between Ukraine and Russia and Fed’s tightening cycle remain the main issues driving the markets.
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.