Range Markets

During the upcoming trading week traders and investors look to the releases of high-impacting economic data from the United States economy. Gross Domestic Product data from the United States economy will be highly-anticipated this week, with most economists predicting that economic growth inside the world’s largest economy contracted. The US economy also releases key Inflation, Jobs, Consumer Confidence, and Durable Goods Numbers.

Financial market participants also look to CPI inflation, IFO, Consumer Confidence, and GDP numbers from the German economy. Gross Domestic Product figures from the Canadian and Italian economies will also closely watch this week.

Monday 25th May, German Quarterly GDP

German Gross Domestic Product is one of the primary indicators used to evaluate the health of the German economy. Financial markets watch this release closely as the German economy is the largest inside the eurozone. The GDP figure is released by the Statistisches Bundesamt Deutschland is a key indicator of economic health.

  • The EURUSD pair is bearish while trading below the 1.0780 level, key support is found at the 1.0650 and 1.0500 levels.
  • If the EURUSD pair moves above the 1.0780 level, buyers may test towards the 1.0990 and 1.1130 levels.

Tuesday 26th May, US Consumer Confidence

Consumer Confidence is released by the Conference Board measures the level of consumer confidence in economic activity. The Conference Board index has the largest pooling sample of any US measure of consumer confidence. The Conference Board Consumer Confidence Index is a barometer of the health of the U.S. economy from the perspective of the consumer.

  • The GBPUSD pair is only bullish while trading above the 1.1950 level, further upside towards the 1.2090 and 1.2200 resistance levels seems possible.
  • If the GBPUSD pair trades below the 1.1950 level, sellers are likely to test towards the 1.1410 and 1.1200 support levels.

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Wednesday 27th May, Swiss ZEW expectations

The ZEW Survey Expectations is published by the Centre for European Economic Research indicates the 6 months economic outlook for Switzerland, with a focus on different elements including business environment and employment conditions. Large changes in the survey can impact the Swiss Francy exchange rate.

  • The USDCHF pair is only bearish while trading below the 0.9540 level, further downside towards the 0.9410 and 0.9300 support levels seems possible.
  • If the USDCHF pair trades above the 0.9540 level, buyers are likely test towards the 0.9710 and 0.9890 resistance levels.

Thursday 28th May, US Durable Goods Orders

The Durable Goods Orders is a government report, released by the US Census Bureau which measures consumer spending on long-term purchases, products that are expected to last more than three years. Durable goods are generally sensitive to economic fluctuations because durable products usually involve large investments. Consumers becoming skeptical about economic conditions causes sales of durable goods to be among the first to be affected.

  • The EURGBP pair is only bullish while trading above the 0.8955 level, further gains towards 0.9450 and 0.9610 levels remain likely.
  • If the EURGBP pair trades below the 0.8955 level, sellers may test towards the 0.8850 and 0.8700 support levels.

Friday 29th May, US Core Price Index

The Federal Reserve utilizes a measure of inflation resulting from the PCE as their primary gauge of inflation. A stable Personal Spending figure reflects that consumers are purchasing goods and services, thus spurring output growth and fueling the economy. The report is greatly valued mainly due to its capability of forecasting inflationary pressures. An overall increase in prices may be derived from an excess take in of these high levels of production and consumption.

  • The USDJPY pair is bearish while trading below the 108.00 level, further losses towards the 106.00 and 104.50 levels remains possible.
  • If the USDJPY pair trades above the 108.00 level, buyers are likely to test the 111.60 and 113.00 resistance levels.xx

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