Welcome to another edition of FXGlobe’s weekly market review. This week was a ride of epic proportions—thanks largely to the much-anticipated Non-Farm Payrolls (NFP) release.
Let’s dive into the economic indicators, chart movements, and major events that defined the trading week, and see what might be in store for the days ahead.
Last Week’s Economic Indicators
U.S. Data
- ISM Manufacturing PMI: The week kicked off with the ISM Manufacturing PMI coming in at 49.0, surpassing expectations of 47.8 but still showing contraction in the sector.
- JOLTS Job Openings: A notable beat with 9.61 million job openings, significantly outperforming the expected 8.81 million.
- Non-Farm Employment Change: This was the headline of the week. A smashing 336K jobs were added, leaving forecasts in the dust and reinvigorating discussions about economic recovery.
Australian and New Zealand Data
- AUD Cash Rate: Held steady at 4.10%, with the Reserve Bank of Australia releasing a rate statement that didn’t rock the boat.
- NZD Official Cash Rate: Remained unchanged at 5.50%, with no unexpected twists in the RBNZ’s rate statement.
Chart Analysis: What the Market is Telling Us
The USD had a volatile session, surging on the NFP release but then reversing its gains aggressively. We observed bullish engulfing candles in the daily charts across all asset classes. This could indicate a weakening USD and opportunities in EURUSD, Silver, Bitcoin, and global indices. The US30 producing a very bullish engulfing candle off of support suggests an interest in pushing higher in the coming days.
The TECH100 weekly chart here is now producing a strong bullish candle off of support, even as the prior week’s candle was also bullish off support. Another signal of the intent to climb higher next.
USOil has retraced on the weekly down to a recent major support level. The trend is still up, but will it hold. If it does, this is where it could turn.
EURUSD weekly, after 11 red weeks, we have our first green weekly candle, and a bullish rejection candle at that. A positive sign, implying that a move higher could be on the cards next.
Looking Ahead: Key Events for Next Week
- U.S. Core CPI and CPI m/m: With inflation on everyone’s mind, these metrics could influence market direction.
- FOMC Meeting Minutes: The Federal Reserve’s thoughts on the current economic situation may trigger market movements.
- GBP GDP m/m: After a decline of 0.5% last month, the market is looking for a 0.2% growth. How this will affect the pound remains to be seen.
The market moves from last week have set up the coming week for some potentially strong reversals in several asset classes. As traders, we’re always looking for these kinds of opportunities. So, gear up for another exciting week ahead!
That’s it from FXGlobe for this week. For more in-depth analyses and market opportunities, don’t forget to visit FXGlobe.com. Keep calm and carry on trading!
