Range Markets

During the upcoming week traders and investors look to the latest developments surrounding the coronavirus and the release of the Non-farm payrolls job report from the US economy. Due to the impact of the coronavirus on the United States economy, most economists are predicting a -300,000 number for the March monthly jobs report.

PMI Manufacturing data from the Chinese economy is also heavily in focus this week. The Caixin Manufacturing PMI is expected to show a record low reading. The United States economy also releases the high-impacting ISM Manufacturing survey, weekly jobless claims, and the ADP Private Sector jobs report.

Monday 30th March, EU Consumer Confidence

Eurozone Consumer Confidence measures the level of consumer confidence in economic activity in the eurozone nations. The reading is formed from a survey of about 2,300 consumers in the eurozone which asks respondents to evaluate future economic prospects. This indicator represents the arithmetic average of the balances of four questions, the financial situation of households, the general economic situation,  unemployment expectations, and savings.

  • The EURUSD pair is only bullish while trading above the 1.1060 level, further upside towards the 1.1240 and 1.1350 resistance levels seems possible.
  • If the EURUSD pair trades below the 1.1060 level, sellers are likely to test towards the 1.0980 and 1.0900 support levels.

Tuesday 31st March, UK Quarterly GDP

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

  • The GBPUSD pair is bearish while trading below the 1.2250 level, key support is found at the 1.2150 and 1.1950 levels.
  • If the GBPUSD pair moves above the 1.2250 level, buyers may test towards the 1.2600 and 1.2710 levels.

A screenshot of a cell phone Description automatically generatedWednesday 1st April, US Private Sector Jobs

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 0.9770 level, further downside towards the 0.9510 and 0.9340 support levels seems possible.
  • If the USDCHF pair trades above the 0.9770 level, buyers are likely test towards the 0.9810 and 0.9890 resistance levels.

Thursday 2nd April, US Initial Jobless Claims

US Initial Jobless Claims are released by the US Department of Labor and are a measure of the number of people filing first-time claims for state unemployment insurance. In other words, it provides a measure of strength in the labor market. A larger than expected number indicates weakness in this market and influences the strength and direction of the US economy. Generally speaking, a decreasing number should be taken as positive or bullish for the US dollar.

  • The USDCAD pair is only bullish while trading above the 1.3900 level, further gains towards 1.4300 and 1.4770 levels remain likely.
  • If the USDCAD pair trades below the 1.3900 level, sellers may test towards the 1.3780 and 1.3550 support levels.

Friday 3rd April, 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 labour in the United States economy.

  • The USDJPY pair is bearish while trading below the 109.00 level, further losses towards the 106.90 and 104.50 levels remains possible.
  • If the USDJPY pair trades above the 109.00 level, buyers are likely to test the 111.00 and 112.20 resistance levels.

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