Fundamentals for the Upcoming Week

Knowing what to expect in terms of news events for the week is crucial when trading as it gives you more insight into the market direction with the specific pairs you are trading.

US and China postponed trade talks that were planned for the weekend past. They were supposed to review the progress made on their phase one trade agreement, but the meeting date has been pushed back indefinitely. In terms of dollar news for the week, the Month over Month Building Permits will be released tomorrow. This is a key indicator of the demand in the housing market. On Wednesday, the Crude Oil Inventories will be important to consider when looking at any pairs that correlate with oil. The outcome of Wednesday’s FOMC Meeting Minutes will be worth noting as this is where stimulus and monetary policy decisions are made. On Thursday, the Philadelphia Fed Manufacturing Index and Initial Jobless Claims will be important to consider as well. Lastly, be watchful of the PMI data as well as the Existing Home Sales which will be released on Friday.

The Japanese yen saw its sharpest recorded contraction in GDP this morning with a 7.8% contraction Quarter over Quarter as well as a 27.8% contraction Year over Year. Their export data will be released on Wednesday and the only other news coming out for the yen this week will be their National CPI as well as the Services PMI coming out on Friday.

South Africa will be posting their CPI data on Wednesday. With alcohol and tobacco sales resuming as of tomorrow, we can expect the rand to gain strength over the next few weeks. It’s estimated that the country has lost around R6 billion in taxes due to the banning of cigarettes.

The Eurozone will be releasing their CPI data on Wednesday and their PMI data on Friday. They will also be publishing an update on their monetary policy on Thursday.

The UK’s CPI data is being released on Wednesday and their Retail Sales data which is coming out Friday.

Gold is currently trading at $1952/oz, Silver at $26/oz and USOIL around $42 per barrel.

Remember to always stick to your trading plan in order to ensure defensive money management. Hit the subscribe button to receive updates sent directly to your e-mail.

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