Markets look for direction from United States data and Brexit drama
During the upcoming trading week traders and investors look to the latest events surrounding the United Kingdom’s departure from the European and the release of fourth-quarter GDP data from the United Kingdom and the United States economy. The New Zealand economy also decides on interest rates, with the Reserve Bank of New Zealand widely tipped to key interest rates on hold at 1.75 percent.
This week we also see a scheduled speech from ECB President Mario Draghi and the release of key monthly and annual inflation data from German, Japanese and United States. The United States economy also releases consumer confidence, housing, and income data.
Monday 25th March, EUR German IFO Survey
The German IFO survey is comprised of three components, the Current Assessment Survey, Business Climate Survey and the Business Expectations Survey. The IFO Survey is a widely observed early indicator for the overall health of the economy. Traders and Investors pay close attention to the IFO Survey, as it can be a leading indicator for current and future trends developing in the German economy.
- The EURUSD pair is bearish while trading below the 1.1290 level, key support is found at the 1.1170 and 1.1000 levels.
- If the EURUSD pair moves above the 1.1290 level, buyers will likely test towards the 1.1330 and 1.1360 resistance levels.
Tuesday 26th March, USD US Consumer Confidence
The US Consumer Confidence Index released by the US Conference Board measures the level of consumer confidence in economic activity. The US Conference Board index has the largest pooling sample of any US measure of consumer confidence, making the Consumer Confidence Index a key barometer of the health of the overall United States economy from the perspective of the consumer.
- The USDJPY pair is bearish while trading below the 110.90 level, key support is found at the 109.10 and 108.40 levels.
- If the USDJPY pair moves above the 110.90 level, buyers may test the 111.20 and 111.80 resistance levels.
Wednesday 27th March, EUR ECB President Mario Draghi Speech
ECB President Mario Draghi will deliver a scheduled speech in Frankfurt, Germany on Wednesday, with market participants listening closely to his speech as German economic data continues to deteriorate. If the ECB President sounds more dovish towards the EU economy, the euro currency will likely trade lower. If the ECB President sounds more upbeat about the eurozone economy, it may have a positive effect on the euro currency.
- The EURGBP pair is only bullish while trading above the 0.8620 level, further upside towards 0.8680 and 0.8740 levels would then seem possible.
- If the EURGBP pair trades below the 0.8620 level, sellers are likely to test the 0.8500 and 0.8310 support levels.
Thursday 28th March, USD Annualized GDP
United States GDP Annualized is released by the US Bureau of Economic Analysis and is based on quarterly economic data. US Gross Domestic Products is the market value of all final goods and services from a nation, usually calculated on an annual basis. Because most of the report components are known in advance, the United States GDP reports significance and ability to move markets has decreased.
- The USDCHF pair is bearish while trading below the 0.9950 level, key support is found at the 0.9910 and 0.9840 levels.
- If the USDCHF pair trades above the 0.9950 level, buyers test towards the 1.0050 and 1.0100 resistance levels.
Friday 29th March, USD US Core PCE
The United States Core PCE Index report is greatly valued, mainly due to its capability of forecasting inflationary pressures inside the American economy. The Federal Reserve utilizes a measure of inflation resulting from personal core expenditure as their primary gauge of inflation. An overall increase in prices may be derived from an excess take in of these high levels of production and consumption.
- The USDCAD pair is bullish while trading above the 1.3300 level, further upside towards the 1.3455 and 1.3670 resistance levels seems possible.
- If the USDCAD pair trades below the 1.3300 level, sellers may towards the 1.3220 and 1.3160 support levels.