A packed week ahead for markets

February 5, 2018

Plenty of data released this week, ensuring it’s another big week for markets.

The USD spiked on Friday night as the US released better than expected Non-Farm Payrolls data. The Average Hourly Earnings result also beat expectations, sending the USD soaring against major currencies. The EUR/USD pair fell from highs of $1.24901 to its current trading level of $1.24325. The GBP/USD felt the brunt of the stronger USD, going from a high of $1.42730 to its current level of $1.40854.

The Dow had a horrible night, getting hammered, plummeting from a high of 26,236.67 to a low of 25,425.59. It has since fallen further, falling as low as 25,172.10. It is currently trading at 25,236.80. German politics continues to weigh heavily on the Dax, losing ground for most of the night, falling from 12,957.89 at the open down to 12,691.67. It is currently trading at 12,709.40.

Looking to the week ahead and there is plenty of data available for people to sink their teeth into. Away from data, there are still some events around the world that can cause market volatility. Donald Trump’s seemingly endless war with the Washington establishment continues, unabated. This may cause markets to get nervous as the outcomes may become unclear, leading to uncertainty. Angela Merkel is still negotiating with other parties to form government. This political limbo is surely weighing down European markets, particularly the Dax. The most important data releases for the week include:

Today – UK Services PMI, US ISM Non-Manufacturing PMI, ECB President Mario Draghi speaks

Tuesday – Australian Retail Sales, Trade Balance, Cash Rate & Rate Statement, Canadian Trade Balance

Wednesday – UK Halifax HPI, Crude Oil Inventories

Thursday – New Zealand Official Cash Rate, RBNZ Governor Grant Spencer speaks, RBA Governor Philip Lowe speaks, BoE Inflation Report, UK Official Bank Rate

Friday – RBA Monetary Policy Statement, UK Manufacturing Production, Canadian Employment Change & Unemployment Rate

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