ภาษาไทย
Tiếng Việt
We’ve got a lot on the plate with some significant events and data releases that could shake things up in the markets. Here’s a quick rundown of what to keep an eye on:
French Elections: The EUR Rollercoaster
We’re kicking off with the French elections. If Marine Le Pen’s party wins an absolute majority, it would set up a unique scenario where France has a government and president from opposing camps, something that’s happened only a handful of times in post-war history.
For traders, this could mean a drop in the euro (EUR). If the EUR takes a hit, don’t be surprised if the European Central Bank (ECB) steps in to stabilize things.
US Focus: Fed’s Next Steps
In the US, all eyes are on Federal Reserve Chairman Jerome Powell and the upcoming FOMC meeting minutes. Traders are keen to know if the Fed is leaning towards cutting rates anytime soon.
Last week’s Core PCE Price Index, the Fed’s favorite inflation gauge, showed a modest increase of 0.1%, but with the previous month’s figure revised up to 0.3%, inflation isn’t quite where the Fed wants it yet. This mixed bag makes Powell’s comments all the more crucial.
UK Elections: GBP on the Move
Over in the UK, it’s election week. Voters head to the polls on Thursday, and the results will be out by Friday. The Labour Party is currently leading in the polls, and a win for them could end the Conservative’s 14-year run.
Such a shift could bring new policies and potential market reactions. The British pound (GBP) might see some action depending on the election outcome, so be prepared for some volatility.
US Non-Farm Payrolls: Jobs Data Insight
Rounding out the week, we have the US Non-Farm Payrolls report on Friday. Forecasts are showing a decline to 189,000 jobs, suggesting a cooling labor market. The Fed is watching these numbers closely as they align with their goals for a tighter labor market. If the report shows fewer jobs added than expected, it might add fuel to the fire for rate cut speculations.
Trading Tips for the Week
- EUR/USD: Keep a close watch on this pair around the French election results. Be ready for potential ECB moves if the EURO drops.
- GBP/USD: Expect some volatility in the GBP/USD pair as the UK election results come in. Labour’s win could shake things up.
- USD: Powell’s comments and the FOMC minutes will be key. Watch for any hints about future rate cuts.
- Safe Havens (USD/JPY, USD/CHF): These pairs might move based on broader market reactions to US data and global events.
USD Index
The price on the chart has traded through multiple technical levels and some observations included:
- The price of the USD Index is grinding higher towards the weekly highs of 106.50.
- Risk events this week could help see the USD gain this week.
EUR/USD
The price on the chart has traded through multiple technical levels and some observations included:
- The price of EUR/USD is one to watch this week if the French elections go in favor of the far right.
- Last week price remained range bound as traders positioned themselves for event risk, a break lower could see the price retest lows of 1.0600. A break higher could see the price trade towards 1.0800
GBP/USD
The price on the chart has traded through multiple technical levels and some observations included:
- The price of GBP//USD will also be volatile this week as price hovers above the 1.2500 support zone.
- Price is trading within a bearish channel which could break this week.
USD/JPY
The price on the chart has traded through multiple technical levels and some observations included:
- Event risk could put some pressure on USD/JPY prices this week, any sharp movements in the price could bring intervention.
- Key resistance is at 1640.00 but the price could find support on any sharp movements towards 157.00.
Have you watched our latest video update? You can see it here.
Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you with your quick account setup for any future concerns. Start trading with Blueberry Markets.
About The Author
