Range Markets

Macro focus

During the upcoming trading week traders and investors look to the releaase of top-tier economic data from the United States, European Union,  Australian , New Zealand, and the United Kingdom economies. The United States economic calendar is exceptionally busy this week, as the world’s largest economy releases important Jobs, Inflation, Housing, Confidence, and Retail Sales data.

Other highlights on the economic calendar this week include the Reserve Bank of New Zealand interest rate decision, Australian monthly jobs figures, and Chinese Inflation and Retail Sales data. Traders also look to important Employment and Unemployment data from the United Kingdom and European Union.

Monday 10th August, US Jolts Job Openings

The JOLTS Job Openings release is a key national survey taken by the United States Bureau of Labor Statistics, which helps to measure job vacancies in America. JOLTS job opening collects data from US employers including retailers, manufacturers and different offices each month. The report has the ability to move the US dollar currency, and also equity markets in the United States.

  • The USDJPY pair is only bullish while trading above the 106.00 level, key resistance is found at the 106.50 and 107.10 levels.
  • If the USDJPY pair moves below the 106.00 level, sellers may test towards the 105.30 and 104.80 levels.

Tuesday 11th August, UK Claimant Change

The UK Claimant Change is releasedby the National Statistics and measures the change in the number of unemployed people in the United Kingdom during the reported period. This figure is not an unemployment indicator it simply measures the number of people claiming benefits. Most analysts are expecting a high number due to the effects of the coronavirus lockdown is having on the UK economy.

  • The GBPJPY pair is only bearish while trading below the 136.00 level, key technical support is found at the 133.80 and 132.00 levels.
  • If the GBPJPY pair trades above the 136.00 level, buyers will likely test towards the 139.10 and 140.00 levels.

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Wednesday 12th August, UK Consumer Price Index

The United Kingdom Consumer Price Index is released by the National Statistics and measures the change in the price of goods and services from the perspective of the consumer. CPI is a key indicator that measures inflation and changes in purchasing trends, therefore CPI figures are closely watched by the Bank of England. A rise in the Consumer Prices Index may determine whether the Bank of England increases interest rates in order to manage inflation and slow economic growth.

  • The GBPUSD pair is only bearish while trading below the 1.2900 level, further losses towards the 1.2830 and 1.2660 levels remain likely.
  • If the GBPUSD pair trades above the 1.2900 level, buyers may test towards the 1.3200 and 1.3250 resistance levels.

Thursday 13th August, US Initial Jobless Claims

US Initial Jobless Claims is released by the US Department of Labor on a weekly basis, and is a measure of the number of jobless claims filed by individuals seeking to receive state jobless benefits. This figure measures the strength in the United States labor market, and is closely followed by both traders and investors.

  • The USDCAD pair is only bearish while trading below the 1.3300 level, key support is found at the 1.3230 and 1.3000 levels.
  • If the USDCAD pair moves above the 1.3300 level, buyers will likely test towards the 1.3420 and 1.3500 resistance levels.

Friday 14th August, US Comsumer Sentiment

The Michigan Consumer Sentiment Index released by the University of Michigan is a survey of personal consumer confidence in economic activity. It shows a picture of whether or not consumers are willing to spend money. Generally speaking, a high reading anticipates positive for the US dollar currency, while a low reading is seen as negative for the US dollar currency.

  • The USDCHF pair is only bearish while trading below the 0.9225 level, key support is found at the 0.9100 and 0.8980 levels.
  • If the USDCHF pair trades above the 0.9225 level, buyers may test towards the 0.9300 and 0.9410 resistance levels.

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