Monday Preview: Elections, Geopolitical Tensions and FOMC Shaping the Week
Rowan Crosby • 2 min read
Welcome to Another Big Trading Week,
Last week was all about the FOMC. As we expected rates were left unchanged, however, the big news development was the fact that the timeline for a hike in rates appears to be coming forward. That added some spice to what was a new heavy week.
North Korea continues to cause issues for markets, with the both President Trump and Kim Jong-un refusing to take a backward step. It seems as we approach the weekends, safe haven assets got their obligatory rallies, followed by a weekly sell-off.
We have two elections going on with the NZD and EUR being affected by the Kiwi and German Elections respectively. MArkets don’t like change or uncertainty however it appears that the incumbents will remain.
To me, this is a week all about the fallout from the above news and it would be a chance for forex markets to start gaining some momentum.
Top Economic Events at a Glance
EUR – German IFO Index
USD – Consumer Confidence
USD – Durable Goods & Pending Home Sales
NZD – RBNZ Interest Rate Decision
EUR – Business Confidence
EUR – German CPI
USD – GDP
JPY – Unemployment
EUR – German Unemployment
GBP – GDP
EUR – Inflation
USD – Chicago PMI and Michigan Consumer Confidence
Is USD Starting to Turn?
The USD has been steadily trending down over for a significant period of time, however, given the FOMC update during the week, are we about to start turning things around?
Look for a break of the 200 SMA to the upside. If we can hold above that level, things we start to look a lot more bullish in my opinion.
Hope you all have another massive week. Good trading guys!