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Market Weekly Outlook A Flurry of Economic Indicators Ahead-TraderFactor

Market Weekly Outlook: A Flurry of Economic Indicators Ahead

The forex market braces for a potentially volatile week as a series of high-impact economic events are set to unfold. Each release bears weight and could significantly influence currency volatility and trading strategies.

Here’s what traders need to be aware of:

DateEventPotential Impact on Currencies
Feb 26, 2024US New Home Sales, ECB President SpeaksUSD, EUR
Feb 27, 2024US Durable Goods, Consumer Confidence, etc.USD
Feb 28, 2024Australia CPI, USA Prelim GDP, G20 MeetingsAUD, USD
Feb 29, 2024Multinational Economic Data, G20 MeetingsEUR, CAD, USD and others
Mar 1, 2024China PMIs, Europe CPI, USA ISMAUD, EUR, USD

Key Economic Events

February 26, 2024

US New Home Sales

This indicator provides insights into the demand for residential real estate and the overall economic momentum. A higher number tends to boost the USD as it indicates a robust economy.

ECB President Lagarde Speaks

Speeches by central bank leaders are closely watched for policy clues. Any dovish or hawkish signals from Lagarde can instantly sway the EUR and related pairs such as EUR/USD and GBP/USD.

February 27, 2024

A slew of US data releases, from Durable Goods Orders to Consumer Confidence, is due. Durable goods orders reflect business investment health, hence impacting the USD value on strength or weakness. Similarly, consumer confidence levels can sway market sentiment, affecting USD movements.

February 28, 2024

Australia’s CPI data will impact the AUD, as higher inflation could signal potential rate hikes. Concurrently, the USA Prelim GDP offers a crucial GDP assessment, with significant deviations from forecasts potentially causing USD volatility. The G20 Meetings are also set to occur, which can result in announcements influencing the global markets, including forex.

February 29, 2024

A packed day for economic releases, with German Prelim CPI, Canada’s GDP, and USA Core PCE Price Index among others. Inflation data can result in immediate pricing recalibration, impacting EUR, CAD, and USD respectively. G20 Meetings continue, and US FOMC Member Mester’s remarks could provide further USD trading cues.

March 1, 2024

China leads with its Manufacturing PMIs, which can affect the AUD/USD due to Australia-China trade connections. Europe’s CPI data will be pivotal for the EUR, while USA ISM Manufacturing PMI and Revised UoM Consumer Sentiment have the potential to move the USD.

Market Analysis and Predictions

EUR/USD Faces Resistance at 1.0835

EUR/USD hovers near the resistance level at 1.0835. A break could lead to an upward trajectory, but the current sentiment leans toward selling, targeting lower support levels.

market weekly outlook

The EUR/USD pair is expected to experience choppy price action with a bearish bias as long as it faces key resistance at 1.0835. With the potential downside of 20-40 pips, traders are advised to sell at the pivot point of 1.0835, targeting levels of 1.0805 and 1.0790.

GBP/USD Under Pressure

GBP/USD may exhume bearish undertones as it contends with the downward pressure. Traders may look for sell opportunities at the pivot of 1.2685, with pullback targets at 1.2645 and 1.2630.

market weekly outlook

The GBP/USD pair is under pressure and recommended for selling with an entry price (pivot) set at 1.2685. The RSI indicates a mixed to bearish scenario, with a potential drop of 25-35 pips, targeting levels of 1.2645 and 1.2630.

Crude Oil (WTI) Trending Downwards

Crude oil prices are under scrutiny with key energy summits on the horizon. WTI traders eyeing sell positions around the pivot of 76.70, hoping to capitalize on declining prices.

market weekly outlook

Intraday trading analysis suggests that Crude Oil (WTI) is likely to continue its downward trend. With the RSI advocating for further downside, traders are advised to sell at the pivot point of 76.70, targeting levels of 75.50 and 75.10.

Gold’s Bullish Bias Continues

Gold shows resilience with a bullish outlook, making buying around 2027.00 potentially lucrative with the RSI favoring an uptick towards 2041 and 2047.00 resistance levels.

market weekly outlook

Disclaimer:

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Author

  • Phyllis Wangui

    Phyllis Wangui is a Financial Analyst and News Editor with qualifications in accounting and economics. She has over 20 years of banking and accounting experience, during which she has gained extensive knowledge of the forex, stock news, stock market, forex analysis, cryptos and foreign exchange industries. Phyllis is an avid commentator on these topics and loves to share her insights with others through financial publications and social media platforms.