Forex The Epicenter This Week For Markets
The broad markets proved challenging last week as gains made in equities, particularly on Wall Street were beaten back late in the week. And the U.S Dollar’s sudden strength will face tests in the coming days as the European Central Bank and the Bank of Japan prepare their monetary policy decisions. And U.S Gross Domestic Product will be released on Friday.
Trump Provides Constant Soundbites, Global Equities Remain Skittish
U.S markets stumbled going into the weekend with heavy losses on the three big Indexes. Data from the States was relatively light last week, but this will change in the coming days as a Consumer Confidence number is released on Tuesday and growth results are published on Friday. Donald Trump continues to be a walking microphone, but the U.S has seemingly let it be known this weekend, it plans on dialing back its trade disagreement with China. Germany issued rather lackluster – in fact poor – economic data last week and tomorrow’s manufacturing outcome should be watched. Global equities remain skittish with no sense of genuine direction. And Morgan Stanley late last week issued a statement from it investment banking group that it expects rather challenging conditions in equity markets over the next couple of years.
Technical Conditions Challenging in Forex, ECB & BoJ Late this Week
The Euro and Pound found themselves challenged late in the week as the U.S Dollar gathered strength. However, cynics will point to the weak European inflation data, and Brexit political problems in the U.K as reasons for the downturn – and they may be correct. The European Central Bank will conduct its monetary policy meeting this week and hold its Press Conference on Thursday. The Bank of Japan will do the same on Friday. The Yen has been relatively weak against the U.S Dollar too. The Euro, Pound and Yen will face technical speculative decisions in the coming days. The Euro and Pound are near important support, while the Yen remains near rather intriguing resistance. The combination of the ECB & BoJ with the U.S growth numbers via the GDP outcome late in the week will create tempting conditions for traders.
Golds Falls from Highs as Dollar Weighs In, Downside Momentum Heats Up
Gold was not able to sustain its superior values before going into the weekend and dropped to approximately 1335.00 U.S Dollars per ounce. The strength in the Dollar the past couple of sessions likely created speculative sentiment in the precious metal. However, Gold also was not able to mount a real challenge to abundant resistance near 1350.00 U.S Dollars per ounce, which was a bad sign. Support is near 1323.00 for traders who expect downside momentum to continue.
U.S Growth Numbers Late in the Week, Important German Data Tomorrow
Germany will release its Manufacturing Purchasing Managers Index at 7:30 GMT on Monday. The U.S will see the Conference Board’s Consumer Confidence reading on Tuesday at 14:00 GMT. And on Wednesday, China will get the results from the CB Leading Index at 13:00 GMT. Thursday will deliver the European Central Bank’s Press Conference at 12:30 GMT. And wrapping up the week will be Gross Domestic Product numbers at 12:30 GMT on Friday.
Monday, 7:30 AM, Germany, Flash Manufacturing PMI
Tuesday, 14:00 PM GMT, U.S, CB Consumer Confidence
Wednesday, 13:00 PM GMT, China, CB Leading Index
Thursday, 12:30 PM GMT, E.U, ECB Press Conference
Friday, 12:30 PM GMT, U.S, Advance Gross Domestic Product