Range Markets

During the upcoming trading week the Nonfarm payrolls job report headlines the economic docket alongside the release of the FOMC Meeting Minutes. Most economists are expecting a stronger June job number after last month’s heavily negative monthly US jobs figure. Traders and investors also look to the FOMC Meeting Minutes and key speeches from the US Treasury Secretary and FED Chair Jerome Powell.

Manufacturing data is also on traders’ radar this week, with Chinese and United States PMI numbers. The United Kingdom economy Quarterly Gross Domestic Product numbers will also be released, alongside important monthly UK Services PMI data.

Monday 29th June, US Pending Home Sales

The Pending Home Sales released by the National Association of Realtors is a leading indicator of trends of the housing market in the US It captures residential housing contract activity of existing single-family homes. As the housing market is considered as a sensitive factor to the US economy, this figure can generate some volatility for the US dollar currency. Generally speaking, a high reading is seen as positive for the US dollar, while a low reading is seen as negative for the US dollar currency.

  • The EURUSD pair is only bearish while trading below the 1.1190 level, key support is found at the 1.1150 and 1.1100 levels.
  • If the EURUSD pair trades above the 1.1190 level, buyers will likely test towards the 1.1250 and 1.1300 resistance levels.

Tuesday 30th June, UK Quarterly GDP

The UK Gross Domestic Product is by the National Statistics and is a measure of the total value of all goods and services produced by the UK. The quarterly GDP figure is considered as a broad measure of the United Kingdom’s overall economic activity. Generally speaking, a rising trend has a positive effect on the British pound currency, while a falling trend is seen as negative for the British pound.

  • The GBPUSD pair is bearish while trading below the 1.2400 level, key support is found at the 1.2280 and 1.2200 levels.
  • If the GBPUSD pair moves above the 1.2400 level, buyers may test towards the 1.2455 and 1.2540 levels.

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Wednesday 1st July, US ADP Jobs Report

The ADP Private Sector employment change jobs report is released by the US Automatic Data Processing Inc and measures the change in the number of people employed inside the American private sector. A rise of this figure is seen as positive and good for stimulating US economic growth, while a weaker-than-expected number is seen as bearish and a possible indicator for future economic weakness.

  • The USDCHF pair is only bearish while trading below the 0.9530 level, further downside towards the 0.9460 and 0.9400 support levels seems possible.
  • If the USDCHF pair trades above the 0.9530 level, buyers are likely to test towards the 0.9600 and 0.9640 resistance levels.

Thursday 2nd July, US Nonfarm Payrolls Job Report

The NFP job report shows the monthly change in employment in the American economy, excluding the farming sector. The Non-farm payroll job report is the most carefully observed indicator in the employment situation inside the United States. It is considered the most inclusive calculation of job creation, which causes the Nonfarm Payrolls Job report to become highly significant to market participants, due to the great importance of labor in the United States economy.

  • The USDJPY pair is bearish while trading below the 107.00 level, further losses towards the 106.40 and 106.00 levels remains possible.
  • If the USDJPY pair trades above the 107.00 level, buyers are likely to test the 107.70 and 108.40 resistance levels.

Friday 3rd July, UK Services PMI

The UK PMI services number is released by both the Chartered Institute of Purchasing & Supply and the Markit Economics. The United Kingdom Services PMI is an indicator of the economic situation in the UK services sector that captures an overview of the condition of sales and employment. Traders want the highest possible reading as that will be taken as positive for the GBP. Any reading above 50 signals expansion, while a reading under 50 shows contraction.

  • The EURGBP pair is only bullish while trading above the 0.9050 level, key resistance is found at the 0.9100 and 0.9150 levels.
  • If the EURGBP pair trades below the 0.9050 level, sellers may test towards the 0.9000 and 0.8910 levels.

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