This week’s financial landscape is bristling with pivotal events such as central bank decisions that could induce significant volatility across the Stock Market, Forex, and Cryptocurrency markets. With several central bank meetings on the horizon, traders must brace for potential market shifts. Here’s what day traders, swing traders, and crypto enthusiasts should monitor:
Highlights
| Day | Event | Potential Impact on Currency Pairs |
|---|---|---|
| Monday | China’s Industrial Production y/y and Retail Sales y/y data | Could significantly influence the AUD due to Australia’s strong trade ties with China. Positive data may bolster the AUD. |
| Tuesday | BOJ Policy Rate, Monetary Policy Statement and BOJ Press conference; Australia Cash Rate, RBA Rate Statement and RBA Press Conference | These events are critical for the JPY and AUD, respectively. A hawkish BOJ could strengthen the JPY, especially against the USD. Similarly, RBA’s decisions can cause volatility in the AUD/USD pair. |
| Tuesday | Canada’s CPI m/m, Median CPI y/y, Trimmed CPI y/y and Common CPI y/y; USA Building Permits | Important indicators for the CAD. Higher-than-expected inflation figures could lead to a stronger CAD, impacting the CAD/USD pair. U.S. Building Permits data also has the potential to move the USD. |
| Wednesday | Britain’s CPI y/y; ECB’s President Lagarde Speech; USA Federal Funds Rate, FOMC Economic Projections, FOMC Statement and FOMC Press Conference | Key for the EUR and GBP against the USD. High CPI might strengthen the GBP. Comments from ECB President Lagarde and the Fed’s decisions can significantly influence the EUR/USD and GBP/USD pairs. |
| Thursday | Australia’s Employment Change and Unemployment Rate; SNB Monetary Policy Assessment and SNB Policy Rate; Eurozone’s (German and Britain’s) Flash Services PMI and Flash Manufacturing PMI; Britain’s Bank of England Monetary Policy Summary, MPC Official Bank Rate Votes and Official Bank Rate; USA Unemployment Claims, Philly Fed Manufacturing Index, Flash Manufacturing PMI, Flash Services PMI and Existing Home Sales | Employment data from Australia can affect the AUD/USD. SNB decisions may impact CHF pairs. PMI figures and BoE’s decisions are crucial for the EUR, GBP, and their pairs with USD. U.S. economic indicators are likely to influence the USD’s strength. |
| Friday | Britain’s Retail Sales m/m; German ifo Business Climate; Euro Summit; Canada’s Core Retail Sales m/m and Retail Sales m/m; USA Fed chair Powell speech | Retail sales data from Britain and Canada can sway the GBP and CAD, respectively. The German ifo Business Climate and outcomes from the Euro Summit are significant for the EUR. Fed Chair Powell’s speech is highly anticipated for potential clues on future U.S. monetary policy, directly affecting the USD. |
Currencies Await Impact from Central Bank Decisions and Policy Reviews
The AUD/USD currency pair is encountering a pivotal moment, with traders closely monitoring its performance amidst varying economic pressures. Despite the positive impact of robust industrial growth in China, which typically bolsters the Australian dollar due to the two countries’ significant trade relations, the pair has struggled to maintain upward momentum. This is largely attributed to the decline in Iron Ore prices, a critical component of Australia’s export revenue.
As a result, key resistance levels have emerged, notably at 0.6575. Market analysts suggest cautious trading strategies, recommending an entry price around the pivot point of 0.6575, with target and take profit levels set at 0.6545 and 0.6530, respectively.
AUDUSD Daily Chart
Bitcoin’s Path Determined by Sentiment:
Bitcoin (BTC/USD) is showing promising signs for investors and traders alike. The current technical analysis indicates a favorable trend towards the upside, with key indicators suggesting that now might be an opportune moment to consider buying. The critical support level is identified at 67770, which traders are closely watching. Should this level hold, it sets the stage for a potential upward trajectory, with targets set at 70200 to 70910.
BTC/USD Daily Chart
Traders looking to capitalize on this movement are advised to consider an entry price at the pivot point of 67770, while managing their risk exposure to no more than 1% per trade within the spot market.
Equities Poised on Precarious Edges
The FTSE 100, DAX 40, and Nasdaq 100 are all at critical points as they hover around historical highs or consolidate gains. Their future direction is likely to hinge upon the outcomes of upcoming economic events and data releases.
Pivotal Events to Watch:
- Tuesday kicks off crucial policy decisions. The Bank of Japan (BOJ) may adjust its policy rate, marking a historic shift that could influence the JPY/USD pair.
- Mid-week ceremonies include the Federal Open Market Committee (FOMC) meeting, an event that holds the global financial market in anticipation. The EUR/USD pair specifically might experience tight trading ranges leading up to the major reveals.
- The Eurozone gears up for volatility with Germany’s ZEW Economic Sentiment Indicator and the Flash PMI releases that can sway the EUR, GBP, and USD pairs.
- Britain’s monetary policy updates from the Bank of England will culminate Thursday’s sessions, prompting traders to closely monitor potential impacts on currency pairs.
Commodities — An Eye on Gold:
Gold rebounds to $2,160, drawing strength from a subdued US Treasury yield landscape before the Fed policy meeting. The metal’s trajectory hangs on the forthcoming economic sentiment.
Anticipated Event Impact:
- AUD/USD Intraday volatility is to be expected with Australia’s employment update.
- JPY/USD Pair may react to potential BOJ rate changes post-meeting.
- EUR, GBP, and USD poised for swift movements following central bank statements.
- CAD watchers have Canada’s CPI and retail sales data to examine.
- Gold and Cryptocurrency traders should eye the Federal Reserve’s activities for directional cues.
Final Trader’s Tips
- Fed Chair Powell’s speech on Friday is likely to shake the USD pairs.
- The EU Summit could sway the Euro considerably—trader vigilance is advised.
- Trade with caution and set appropriate risk management strategies before key announcements.
Disclaimer
All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.
