Markets on Monday: Huge Week Of Economic Data Ahead
Rowan Crosby • 1 min read
Forex Markets have been busy in the last few weeks and things aren’t about to change anytime soon. This week there is a string of data releases that will have a big impact on the majors.
The USD, in particular, is going to be in the firing line as it tries to recover from its recent slump. On the agenda this week the headline act is the FOMC Statement.
While we aren’t expecting any official changes to interest rates, we as always should be looking for hints about what lies ahead. The real curveball here is the fact that this is the final meeting with Janet Yellen as Chief. The top job then gets handed over to Fed Governor Jerome Powell.
On Friday we then have the monthly employment report out of the US. This is always a big market mover and stocks, in particular, will be watching this one closely. Any beat here has the potential to send US equities booming if they aren’t already.
Where to for the USD?
The Greenback has been getting destroyed in recent times. And in reality, the massive fall is probably one of the biggest contributors to the soaring stock market.
Looking at it from a technical perspective we are simply selling and retrace here. The chart is just about as bearish as it gets and I’m in no mood to be picking any kind of top.
If we get some buying interest on Monday I’d be watching the 89.50 level as a point to be selling. But just be careful because of the big data coming out this week. It has the potential to push markets around more than usual.