The week ahead features one key interest rate decision from the Reserve Bank of New Zealand and plenty of important macro data to look forward to for currency traders, which should provide pockets of elevated volatility – see the calendar highlights, below.

In addition to next week’s key data releases, we will be watching the equity markets closely. With the third quarter reporting season dying down, and the US markets hitting repeated new all-time highs in the face of declining earnings growth, the risks of a correction have been rising by each passing day. Admittedly, optimism over a US-China trade deal has been on the rise and this is what has helped to boost sentiment. But we think that investors will soon run out of reasons to justify buying stocks at these extremely elevated and overbought levels, without a decent pullback. Whether it is Trump, the Fed or trade representatives negotiating a deal, these headline-driven markets are almost entirely dependent on who says what at any given time, as we have witnessed this week. With positive headlines driving the markets upwards, a few negative headlines could undo the rally. So, a correction in the stock markets is a possibility, which means investors should, as always, take care of risk extremely carefully. A sharp retreat in equities, if seen, should help to boost the appeal of safe-haven gold and Japanese yen, among other things.

What’s more, crude oil has risen to a potential turning point in the face of rising US crude stockpiles and weakening demand outlook. The price of crude could retreat after the WTI contract reached the pivotal level of $57.50 this week. If oil turns lower, this could negatively impact oil-linked Canadian dollar and Norwegian Krona.

Here is what’s on the agenda next week:

 

Monday

  • Japan Core Machinery Orders m/m.
  • UK GDP, manufacturing production and construction output.
  • US and Canadian banks will be closed in observance of Veterans Day/Remembrance Day.

 

Tuesday

  • UK Average Earnings Index 3m/y.
  • German ZEW Economic Sentiment.

 

Wednesday

  • RBNZ a 25-basis point cut to 0.75% expected, especially after this week’s weaker wages data.
  • UK CPI.
  • Eurozone industrial production.
  • US CPI and Fed Chair Powell’s testimony.

 

Thursday

  • Japan Prelim GDP, Australian employment report, and Chinese industrial production and retail sales.
  • German Prelim GDP, Eurozone GDP later.
  • UK Retail Sales m/m.
  • US PPI.

 

Friday

  • Eurozone trade figures.
  • US data dump includes retail sales, Industrial Production and Empire State Manufacturing Index.

Trading leveraged products such as FX, CFDs and Spread Bets carry a high level of risk which means you could lose your capital and is therefore not suitable for all investors. All of this website’s contents and information provided by Fawad Razaqzada elsewhere, such as on telegram and other social channels, including news, opinions, market analyses, trade ideas, trade signals or other information are solely provided as general market commentary and do not constitute a recommendation or investment advice. Please ensure you fully understand the risks involved by reading our disclaimer, terms and policies.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD climbs to 10-day highs above 1.0700

EUR/USD climbs to 10-day highs above 1.0700

EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.

EUR/USD News

GBP/USD extends recovery beyond 1.2400 on broad USD weakness

GBP/USD extends recovery beyond 1.2400 on broad USD weakness

GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally. 

GBP/USD News

Gold rebounds to $2,320 as US yields turn south

Gold rebounds to $2,320 as US yields turn south

Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.

Gold News

Here’s why Ondo price hit new ATH amid bearish market outlook Premium

Here’s why Ondo price hit new ATH amid bearish market outlook

Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.

Read more

Germany’s economic come back

Germany’s economic come back

Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.

Read more

Majors

Cryptocurrencies

Signatures