Hello traders! This is Adam Harris, your trusted Ambassador at FXGlobe.
Let’s dive into the intricate world of financial markets and review the twists and turns we’ve observed this week, alongside a preview of what to expect in the week ahead.
Manufacturing Sector Fluctuations and Central Bank Actions: A Weekly Market Recap
This past week saw some unexpected fluctuations, with key areas of interest lying in the manufacturing sector. Both the French and German manufacturing sectors experienced a deceleration, mirroring similar contractions in the United States.
Yet, it wasn’t all doom and gloom in the service sectors. Germany and the United States rallied and outperformed predictions, showcasing a noteworthy discrepancy between these two crucial sectors. The divergence presents potential opportunities for discerning traders to capitalize on.
Central Bank Actions and Economic Boost: Weekly Market Highlights
Another focal point this week was the actions of the central banks. The Federal Reserve (Fed) and the European Central Bank (ECB) both decided to maintain their rates. Over in the U.S., we saw a significant boost with the Advance Gross Domestic Product (GDP) outperforming expectations and unemployment claims reducing, reinforcing the strength of the U.S. economy.
The Bank of Japan (BOJ) also made headlines with their policy statement and outlook report released earlier today. Meanwhile, the German Preliminary Consumer Price Index (CPI) remained steady, and in the U.S., core inflation and employment costs met market expectations.
Strong US Dollar, Surging Crude Oil, and Bullish Equity Indices: Weekly Trading Update
On the trading front, we observed the U.S. dollar continuing its strength into the second week. Crude oil marked some of the most significant gains seen in over a year, a trend watched closely by commodity traders worldwide. In addition, global equity indices had another green week, bringing cheer to equity traders.
The S&P 500 Index showing yet another bullish weekly close.
Here we see the U.K.’s FTSE Index enjoying a strong weekly candle.
And here we see Crude Oil’s incredibly bullish monthly candle- haven’t seen one of these in a while!
Key Economic Events to Watch Next Week for Traders
Moving into the next week, traders should pay close attention to a number of key economic events. On Tuesday, look out for Australia’s cash rate decision and the Reserve Bank of Australia‘s (RBA) rate statement. Also, the U.S. ISM Manufacturing PMI and New Zealand’s employment change and unemployment rate will offer critical insights into these economies.
Wednesday’s highlight will be the U.S. ADP Non-Farm Employment Change, a key economic indicator. On Thursday, all eyes will be on the UK for the Bank of England’s (BOE) Monetary Policy Report, official bank rate, rate votes, and a speech by BOE Governor Bailey. The U.S. will continue to hold interest with its release of unemployment claims and ISM Services PMI.
Friday’s Job Figures and Market Sentiment: Potential Trading Opportunities
The week wraps up on Friday with employment and unemployment figures from the U.S. and Canada, including the U.S. non-farm employment change and average hourly earnings, which can have significant impacts on market sentiment.
For those employing technical analysis in their trading strategies, the upcoming week is set to continue offering potential opportunities across markets and currencies. One question to ponder: Will Gold finally kick off its rally? Stay tuned for more insights and analysis, only here at FXGlobe.
