This week started quietly with the US and UK off on their Bank Holidays yesterday. This morning sees some key economic manufacturing data coming out of China, which may set the tone in the markets for the week. The other two key events of the week are on Thursday, when Europe announce interest rates – expect them to remain the same at 0%. And Friday – the ‘big one’ with US Non-Farms data being published at 13:30.
WTI Crude Oil hovers around the $50 in a technical resistance price zone. Inventories on Thursday are again expected to fall, but the volatility in Oil this week, may come from the OPEC meetings being held and the decisions (or lack of) that come out from them. Sugar No11 still looks to be the ‘hot’ commodity at the moment with a lot of fund interest and stocks reaching record lows.
The theme of a lack of economic growth is running around the world, keeping indices in check. Most have a neutral theme to them, especially in Europe and the Far East. The US S&P500 looks flat/range bound with possibly a little upside room in it.
A similar theme to previous weeks: JPY still the strongest major. GBP has recovered somewhat from its lows and pushes on, while the USD‘s 3 weeks of strength looks to have calmed down and gone more stagnant. The EUR looks to be weakening. In Emerging Market currencies, BRL and MXN look to be weakening versus the USD, whilst out in the Far East SGD and TWD look to be strengthening versus the USD.
If you found this market information useful and would like to find out more about how you could profit from trading the financial markets, join us at our free seminar 7pm tomorrow evening at Brands Hatch Place Hotel & Spa. Book your place here.
Author Stephen Hoad, BA Hons, MSc, MSTA is a full time trader, technical analyst and one of the UK’s leading trader trainers. He currently lectures for the Society of Technical Analysts.