EU SUMMIT OUTCOME AND HIGH IMPACT US DATA IN FOCUS
BREXIT AND THE US ECONOMY
During the upcoming trading week traders and investors look to the outcome of the EU Summit on Brexit and a raft of high impact economic data from the United States economy. US fiscal policy is also in focus, as Federal Reserve Chairman Jerome Powell delivers a scheduled speech and the release of the FOMC Meeting Minutes.
This week we also see the release of important Manufacturing and non-Manufacturing data from the Chinese economy and Employment, Economic Confidence and Inflation data from the German economy.
Monday 26th November, EUR German IFO Survey
The German IFO Survey is comprised of three components, the Current Assessment Survey, Business Climate Survey and the Business Expectations Survey. The IFO Survey is a widely observed early indicator of the overall health of the economy. Traders and Investors pay close attention to the IFO Survey, as it can help find current and future trends developing in the German economy.
- The USDJPY pair is only bearish while trading below the 112.79 level, key support is found at the 112.20 and 111.060 levels.
- If the USDJPY pair moves above the 111.79 level, buyers will likely test towards the 112.87 and 113.30 resistance levels.
Tuesday 27th November, USD US Consumer Confidence
The US Consumer Confidence Index released by the US Conference Board and measures the level of consumer confidence in economic activity. The US Conference Board index has the largest pooling sample of any U.S. measure of consumer confidence, making the Consumer Confidence Index a key barometer of the health of the U.S. economy from the perspective of the consumer.
- The EURUSD pair is bearish while trading below the 1.1400 level, key support is found at the 1.1300 and 1.1216 levels.
- If the EURUSD pair moves above the 1.1400, buyers may test the 1.1500 and 1.1553 resistance levels.
Wednesday 28th November, USD US GDP Annualized
Gross Domestic Products is the market value of all final goods and services from a nation, usually calculated on an annual basis. US GDP annualized is released by the United States Bureau of Economic Analysis and is solely based on quarterly economic data. Strong Gross Domestic Product growth tends to signal that an economy is undergoing a period of economic expansion.
- The USDCHF pair is strongly bullish while trading above the 1.0100 level, further upside towards 1.0160 and 1.0200 levels remains possible.
- If the USDCHF pair trades below the 0.9960 level, sellers are likely to test the 0.9910 and 0.9887 support levels.
Thursday 29th November, USD US Core PCE
The US Core PCE Index report is greatly valued mainly due to its capability of forecasting inflationary pressures inside the American economy. The Federal Reserve utilizes a measure of inflation resulting from the PCE as their primary gauge of inflation. An overall increase of prices may be derived from an excess take in of these high levels of production and consumption.
- The USDCAD pair is bullish while trading above the 1.3210 level, further upside towards the 1.3320 and 1.3465 resistance levels seems possible.
- If the USDCAD pair trades below the 1.3210 level, sellers are likely to test towards the 1.3120 and 1.3000 support levels.
Friday 30th November, CNY Chinese Manufacturing PMI
The Chinese Manufacturing Purchasing Managers Index is released by the Chinese Federation of Logistics and Purchasing. China’s PMI and is an economic indicator that measures the activity level of purchasing managers in the manufacturing sector each month. The November Chinese PMI is expected to weaken from the previous month’s figure due to a current slowdown in the Chinese economy.
- The AUDUSD pair is only bearish while trading below the 0.7210 level, further downside towards the 0.7150 and 0.7080 levels seems likely.
- If the AUDUSD pair trades above the 0.7210 level, buyers are likely to test towards the 0.7340 and 0.7410 resistance levels.