US data points expected to set the market tone this week
During the upcoming trading week the markets attention is likely to turn United States data points, as the world’s largest economy releases key Jobs, Manufacturing, Consumer Confidence, and Housing data. Positive sentiment towards the United States economy and the US dollar could increase significantly this week as most economists are predicting that the US economy created 655,000 jobs in March and more improvement in US Manufacturing activity.
Aside from US data points, the market will be closely watching a scheduled speech from US President Biden and a host of Federal Reserve members. Traders and investors also look to the release of UK GDP, and Retail Sales data from the German and Australian economies.
Monday 29th March, Dallas FED Manufacturing Survey
The Texas Manufacturing Outlook Survey is a monthly survey, where The Dallas Federal Reserve asks firms about output, employment, orders, prices and other indicators that increased, decreased or remained unchanged over the previous month. Based on the responses received, an index is calculated for each indicator. The indexes are calculated by subtracting the percentage of respondents reporting a decrease from the percentage reporting an increase.
- The USDJPY pair is only bullish while trading above the 108.40 level, further upside towards the 110.30 and 111.00 resistance levels seems possible.
- If the USDJPY pair trades below the 108.40 level, sellers are likely to test towards the 107.80 and 107.30 support levels.
Tuesday 30th March, API Weekly Crude Oil Stock
API’s Weekly Statistical Bulletin reports the total U.S. and regional data relating to refinery operations and the production of four major petroleum products. These products include motor gasoline, kerosene jet fuel, distillate (by sulfur content), and residual fuel oil. Traders and investors pay attention to the reports as these products represent more than 85 percent of the total petroleum industry.
- The USDCAD pair is only bearish while trading below the 1.2570 level, key support is found at the 1.2500 and 1.2400 levels.
- If the USDCAD pair moves above the 1.2570 level, buyers may test towards the 1.2680 and 1.2740 levels.
Wednesday 31st March, ADP Private Sector Report
The ADP private-sector jobs report is released by Automatic Data Processing Inc, and measures the change in the number of employed people in the private sector of the United States economy. A rise of this figure stimulates economic growth and is usually seen as being bullish for the US dollar currency. A weaker-than-expected number may cause traders to sell the IS dollar currency.
- The USDCHF pair is only bearish while trading below the 0.9200 level, further downside towards the 0.9400 and 0.9500 support levels seems possible.
- If the USDCHF pair trades above the 0.9200 level, buyers are likely test towards the 0.9100 and 0.0980 resistance levels.
Thursday April 1st, German Retail Sales
German Retail Sales is a measure of changes in sales of the retail sector inside the German economy and shows the performance of the German retail sector in the short term. Percent changes reflect the rate of changes of such sales. The changes are widely followed as an indicator of consumer spending. Positive economic growth is seen bullish for the euro economy, while a low reading is seen as negative, or bearish, for the euro currency.
- The EURUSD pair is only bearish while trading below the 1.1840 level, further downside towards the 1.1730 and 1.1660 support levels seems possible.
- If the EURUSD pair trades above the 1.1840 level, buyers are likely test towards the 1.1900 and 1.2000 resistance levels.
Friday April 2nd, US Nonfarm Payrolls Job Report
The NFP job report shows the monthly change in employment in the American economy, excluding the farming sector. The Non-farm payrolls job report is the most carefully observed indicator in the employment situation inside the United States. It is considered the most inclusive calculation of job creation, which causes the Nonfarm Payrolls Job report to become highly significant to market participants, due to the great importance of labour in the United States economy.
- The GBPUSD pair is only bearish while trading below the 1.3780 level, further losses towards the 1.3660 and 1.3560 levels remains possible.
- If the GBPUSD pair trades above the 1.3780 level, buyers are likely to test the 1.3870 and 1.3940 resistance levels.