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Lack of Big U.S Data this Week but Fed Officials to be Heard

by with No Comment AMT MarketsDataFeatured Highlights

Lack of Big U.S Data this Week but Fed Officials to be Heard

There will be an absence of large trading volume in many markets today, because of the U.S and Canada Labor Day holiday celebrations. Results from forex markets should be considered with a healthy dose of skepticism by day traders. If you choose to participate today, using entry price orders may protect you against the possibility of price volatility due to quiet markets having the ability to create sudden jolts.

Day traders are advised to be on the lookout for potential surges to develop on Tuesday. U.S financial institutions returning to the markets in full could possibly react to economic data from the States that they may not have acted upon yet, this as outlooks may have been reconsidered over the Labor Day weekend. Equities and indices, U.S Treasuries, and gold should get plenty of attention this week as summer trading comes to an end.

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EUR/USD Three Months Chart as of 4th Sept. 2023

Monday, 4th of September, E.U ECB President Christine Lagarde – the ECB chief will be speaking in London later today. The ECB President might get the attention of EUR/USD traders who may still be scratching their heads regarding last week’s decline in the EUR and trying to figure out why it happened.

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AUD/USD Three Months Chart as of 4th Sept. 2023

Tuesday, 5th of September, Australia RBA Cash Rate – the Reserve Bank of Australia is expected to hold its ground and make no major changes to interest rate policy. The AUD/USD is trading at lows the RBA has acknowledged are troubling. However, there seems to be little the RBA can really do except to wait out the U.S Federal Reserve’s rhetoric to change. As a note, GDP numbers will come from Australia on Wednesday.

Wednesday, 6th of September, Canada BoC Overnight Rate – the Bank of Canada is expected to keep its interest rate policy steadfast without any changes. The USD/CAD could react momentarily to the Bank of Canada’s Rate Statement.

Thursday, 7th of September, China Trade Balance – economic statistics from China have been troubling over the mid-term and there is no reason to think they are suddenly going to turn optimistic. China is receiving plenty of negative attention from ‘Western’ analysts, but the concerns expressed could be legitimate. Slumping growth, real estates problems, and the shadow of deflation are issues in China.

Thursday, 7th of September, U.S Federal Reserve Officials – several high ranking members from the Fed will be speaking at various conferences across the States. Following the lackluster economic data published in the U.S the past couple of weeks, comments from the Federal Reserve members should be given attention to see if they begin to acknowledge interest rate policy should turn more dovish. USD traders will certainly have the ability to spark Forex on Thursday if rhetoric from the ‘officials’ starts to change tone.

Friday, 8th of September, Japan Final GDP – the Gross Domestic Product numbers could prove interesting for USD/JPY traders. Growth is expected to show a gain of 1.4%. The GDP Price Index results should be watched and are expected to match last month’s number with a gain of 3.4%.

Saturday, 9th of September, China CPI and PPI – the inflation numbers will be of interest to investors. These data reports could prove more important than the Trade Balance results released earlier in the week. The USD/CNY should be monitored in the wake of these inflation (deflation) results.

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Risks Ahead: Tranquil Data Mixed with Loud Nervous Chatter

by with No Comment AMT MarketsBehavioral SentimentFeatured Highlights

Risks Ahead: Tranquil Data Mixed with Loud Nervous Chatter

Last Friday finished with stronger than expected Non-Farm Employment Change numbers, which essentially collided with dovish rhetoric via two U.S Federal Reserve FOMC members from the middle of the week; this while inflation clearly remains stubborn in the U.S.

All of which sets up this coming week for nervous trading results and until the 14th of June, when the Federal Reserve’s Federal Funds Rate pronouncements will be brought forth. Plenty of talk about interest rates will be heard in the days ahead and traders should expect to hear debates as the chatter grows louder.

Commodity traders may be interested in the outcome of the OPEC+ meetings taking place this weekend. The cartel’s decisions regarding oil production will affect not only prices of Crude Oil futures, but is a direct reflection regarding global demand, which also tells us about the organization’s viewpoints regarding global economic conditions.

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WTI Crude Oil Three Month Chart as of 4th of June 2023

Monday, the 5th of June, European Services PMI – Germany, France and Italy and will release their Purchasing Managers Index readings. The German outcome could prove interesting because the nation is suffering from recessionary pressures. The PMI results could affect the EUR/USD a bit. The U.K will also release their data too.

Monday, the 5th of June, U.S ISM Services PMI – this report will be of interest because some are expecting a better outcome compared to May’s results. A potentially strong reading could prove problematic and put more pressure on the Federal Reserve to raise interest rates next week.

Tuesday, the 6th of June, Australia RBA Rate Statement – the Reserve Bank of Australia surprised people with an increase of their Cash Rate last month. No increase is expected now, but the RBA’s rhetoric should be listened to as they comment about domestic and global economic conditions.

Wednesday, the 7th of June, Canada BoC Overnight Rate – Bank of Canada is expected to hold its borrowing costs in place, but inflation is still creeping into prices and the BoC’s Rate Statement may prove intriguing.

Thursday, the 8th of June, U.S Weekly Unemployment Claims – following in the footsteps of the stronger than expected jobs numbers last week, this report could get some media fanfare. However, it also may prove to be a lot of noise and have little real affect on market direction.

Friday, the 9th of June, China CPI and PPI – the inflation reports from China could prove interesting in wake of recent lackluster economic data from the nation. Last Thursday’s Caixin Manufacturing PMI results came in slightly better than expected, but data from China the week before was negative. The data from China gives investors and traders insights because of its importance as a global supplier of consumer products.