Trade talks to set the tone for financial markets this week

Market watch

During the upcoming trading week, traders and investors await the latest news surrounding trade negotiations between the United States and China. Financial markets have been lacking direction lately, as recent reports suggest that Sino-US trade talks are still unresolved. Updates surrounding these talks and possible impeachment charges against US President Trump are likely to provide direction for the foreign exchange and equity markets.

The United States economy headlines the economic docket this week with a slew of high-impacting data releases of Consumer Confidence, Durable Goods, Inflation, and Growth data. Federal Reserve Chair Jerome Powell will also deliver a scheduled speech this week, while US markets will be observing the Thanksgiving holiday later this week. The German and Canadian economies will also release important Inflation and Gross Domestic Product data this week.

Monday 25th November, 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 be a leading indicator for current and future trends developing in the German economy.

• The EURUSD pair is only bearish while trading below the 1.1045 level, key support is found at the 1.0980 and 1.0910 levels.
• If the EURUSD pair trades above the 1.1045 level, buyers may test towards the 1.1100 and 1.1180 resistance levels.

Tuesday 26th November, US Consumer Confidence

US Consumer Confidence is released by the Conference Board measures the level of consumer confidence in economic activity. Consumer Confidence is a key barometer of the overall health of the United States economy from the perspective of the consumer. The Consumer Confidence monthly headline reading has a volatile tendency and weak connection to household expenditure. 

• The USDJPY pair is only bearish while trading below the 109.00 level, key technical support is found at the 108.20 and 107.50 levels.
• If the USDJPY pair trades above the 109.00 level, buyers will likely test towards the 109.45 and 110.00 levels.

Wednesday 27th November, 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 in prices may be derived from an excess take in of these high levels of production and consumption.

• The GBPUSD pair is only bearish while trading below the 1.2840 level, key support is found at the 1.2770 and 1.2710 levels.
• If the GBPUSD pair holds above the 1.2840 level, buyers may test the 1.2950 and 1.3000 resistance levels.

Thursday 28th November, German CPI

German CPI is an index that measures the changes in the price of goods and services purchased by consumers, calculated and is published by Statistisches Bundesamt Deutschland. CPI stands for Consumer Price Index and is the main indicator that the German central bank uses to measure inflation and changes in purchasing trends. German CPI data has the ability to move the euro currency if the headline number is significantly higher or lower than expectations.

• The EURGBP pair is only bearish while trading below the 0.8640 level, further losses towards the 0.8540 and 0.8400 levels remains possible.
• If the EURGBP pair trades above 0.8640 level, buyers are likely to test towards the 0.8710 and 0.8800 resistance levels. 

Friday 29th November, Canadian GDP

Canadian Gross Domestic Product is released by Statistics Canada and measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. Gross Domestic Product is one of the primary indicators to determine the overall health of the Canadian economy and is closely watched by market participants and the Bank of Canada.

• The USDCAD pair is only bearish while trading below the 1.3210 level, further losses towards the 1.3140 and 1.3000 levels remains possible.
• If the USDCAD pair trades above the 1.3210 level, buyers are likely to test towards the 1.3310 and 1.3345 resistance levels.