Dec 4 – Major Economic Events To Trade Today
Arslan Butt • 2 min read
Welcome back, fellas. This week is highly significant for the dollar due to certain high impact economic events, specifically the NFP (Non-farm employment) & Unemployment rate. Therefore, most traders will avoid taking long-term positions. Considering this, let's see what we need to keep an eye on today…
Top Economic Events Today
Eurozone – EUR
Spanish Unemployment Change – At 8:00 (GMT), the Ministry of Employment will be releasing the Spanish unemployment change data. The figure is forecasted to be 54.3K, well below 56.8K of last month.
Eurogroup Meetings – The Eurogroup meetings are held in Brussels and attended by the Eurogroup President, Finance Ministers from euro area member states, the Commissioner for economic and monetary affairs, and the President of the European Central Bank. They are set to discuss a range of financial issues, such as euro support mechanisms and government finances. The meetings are closed to the press but officials usually talk with reporters throughout the day. A formal statement covering the meeting objectives may be released after the meetings have concluded. We can expect volatility in Euro currency pairs.
U.S. Dollar – USD
Factory Orders m/m – At 15:00 (GMT), the Census Bureau will release the US factory orders with a forecast of -0.3% which is much lower than the previous figure of 1.4%. This can impact the dollar as well as crude oil. The lower factory orders mean that the companies will utilize and demand less Crude Oil.
USD/JPY – Wating For Resistance Retest
This morning, Bank of Japan governor Kuroda will be speaking in Tokyo. Most of his remarks will be limited to economic growth, such as how Fintech could contribute to raising growth potential. Nothing monetary policy related will come from Kuroda here.
The strength in the dollar initiated a dramatic buying in the USD/JPY. Most of the dollar pairs opened with huge gaps. This came in response to sentiments that the Senate tax bill may raise the risk of more aggressive rate hikes in the world's largest economy.
USD/JPY – 4-Hour Chart -Resistance & Gap
Technically, the RSI and Stochastics are holding in the selling zone. We can see a huge gap on the 4-hour chart. Historically, these gaps are meant to be filled sooner or later. At the moment, $112.885 is the key resistance level.
USD/JPY – Key Trading Levels
Key Trading Level: 112.14
USD/JPY Trading Plan
We need to keep a close eye on $112.885, buying is preferred above this level with a stop loss above $112.450 and take profit at $113.450. Below $112.885, the pair is likely to go for $112.450 and $112.350. Good luck and trade with care!