Range Markets

During the upcoming trading week traders and investors look to the releases of high-impacting economic data from the United States economy, and a key speech from FED Chair Jerome Powell. Gross Domestic Product data from the United and Durable Goods Numbers are the major data releases to watch this week. Market participants will also be closely observing a scheduled speech from Federal Reserve Chair Jerome Powell at the Jackson Hole economic symposium this week.

Financial markets participants also look to GDP numbers from the German, Swiss and Canadian economies, and also PMI Manufacturing data from the Chinese economy. Bank of England Governor Bailey’s speech will be highly-anticipated by sterling traders this week.

Monday, 24th August, Chigago FED Index

The Chicago Fed National Activity Index os released by Federal Reserve Bank of Chicago, and is an important monthly index designed to gauge overall economic activity and related inflationary pressure. Due to the COVID-19 pandemic, most economists are expecting the August reading to be historically low.

  • The USDCHF pair is only bearish while trading below the 0.9300 level, further downside towards the 0.9000 and 0.8970 support levels seems possible.
  • If the USDCHF pair trades above the 0.9300 level, buyers are likely test towards the 0.9410 and 0.9500 resistance levels.

Tuesday 25th August, German Quarterly GDP

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

  • The EURUSD pair is bearish while trading below the 1.1780 level, key support is found at the 1.1650 and 1.1500 levels.
  • If the EURUSD pair moves above the 1.1780 level, buyers may test towards the 1.1960 and 1.2030 levels.

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Wednesday 26th August, 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 GBPUSD pair is only bullish while trading above the 1.3050 level, further upside towards the 1.3170 and 1.3220 resistance levels seems possible.
  • If the GBPUSD pair trades below the 1.3050 level, sellers are likely to test towards the 1.2900 and 1.2800 support levels.

Thursday 27th August, US GDP Price Index

The US GDP Price Index is released by the Bureau of Economic Analysis, Department of Commerce, and measures the changes in the price of all goods and services included in gross domestic product. The Gross Domestic Product price index includes all products accounted for by GDP and does not include the affects of changes in import prices. Large deviations from the consensus GDP reading can cause volatility in the US dollar currency and broader financial markets.

  • The EURGBP pair is only bullish while trading above the 0.8955 level, further gains towards 0.9050 and 0.9170 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 28th August, 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 of 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 106.60 level, further losses towards the 105.30 and 104.80 levels remains possible.
  • If the USDJPY pair trades above the 106.60 level, buyers are likely to test the 107.00 and 108.00 resistance levels.

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