Best Trade Ideas for April
I know we've had quite an amazing run these past few month, with over 78% accuracy in our trade ideas and sentiments, and thousands of pips in profits monthly...
EUR/USD : continues to flirt with drop below post-FOMC low
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
Fibonacci Levels
XAG/USD: Silver continuous to stand above 50% retracement area. Bullish pressure is growing during the last hours and before NFP.
EU Market View
Global shares held near their record high on Friday as investors looked to U.S. jobs data for signs of balanced economic growth with tame inflationary pressure, while Chinese shares dropped a day after China's Communist Party celebrated its centenary. Gold was up on Friday morning in Asia, but investors avoided big bets ahead of the release of critical U.S. employment data that could sway the U.S. Federal Reserve’s recent hawkish stance on monetary policy.
Jobless claims continued their downward trajectory, touching their lowest level since the pandemic shutdown. Monthly nonfarm payroll data, due out later on Friday, is expected to show a 700,000 increase in June, and economists expect wage growth in June of around 0.4%. While the prospects of a strong economic recovery underpin equity markets, investors remained nervous that a sharp recovery from the pandemic could push up inflation to an uncomfortable level for the U.S. Federal Reserve.
Worries over the spread of the Delta coronavirus variant are emerging in various corners of global financial markets, even as U.S. stocks hover near record highs. The Delta variant is now present in over 90 countries and has become the most prevalent variant among new COVID-19 cases in the United States, according to California-based genomics company Helix. So far, however, it is hard to tell how much the new strain will disrupt the global growth rebound that has helped power risk assets higher in recent months.
The dollar has given back some of its recent gains in early European trade Friday, but remains near multi-month peaks against its major peers ahead of the release of the widely-watched monthly payrolls report. The dollar has been supported over the last couple of days by strong U.S. employment data, bringing into question the assumption that U.S. interest rates can stay at ultra-low levels for years.
Oil was up Friday morning in Asia, retaining its gains from the previous session after a disagreement within the Organization of the Petroleum Exporting Countries and allies (OPEC+) delayed a decision on output levels, which might cause an inflationary spike in prices if not resolved.
EU Key Point
- The drop below 1.3800 spells out some danger for cable.
- EUR/USD continues to flirt with drop below post-FOMC low.
- Australia will cut international arrivals by 50% due to COVID-19 delta strain risk.
- South Korea is likely to be the first Asian economy to start normalising monetary policy.
- Morgan Stanley expect the NPF (specifically the unemployment rate) to trigger a stronger US dollar.
Similar
CAD Might Weaken As Oil Market Plunges
Futures for Canada's main stock index rose on Monday, following positive global markets and gains in crude oil prices. First Citizens BancShares Inc's announcement of purchasing the loans and deposits of failed Silicon Valley Bank also boosted investor confidence in the global financial system...
Bitcoin & Gold - Safe Haven Amid Bank Crisis
Investor confidence in the global financial system has been shaken by the collapse of Silicon Valley Bank and Credit Suisse. As a result, many are turning to bearer assets, such as gold and bitcoin, to store value outside of the system without...
Popular
What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
Will Australia's "Rampant Inflation" Prevail in May?
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
How Will BoJ Meeting Affect the Yen
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus
Choose your payment system
