The new trading week starts quietly and somewhat low-active amid thin market and restrained news background. Global markets so far retain positive sentiment and displays some optimism. We need to escalate the Friday Non-Farm data as this statistic seems to seize the initiative and will provide influence for the new weak. As US statistical department reported in January, US economy created 304 thousand job positions in non-agricultural sectors of economy (forecast was around 165 thousands) Average wage growth slowed from 3.3% to 3.2%, however, this gauge remains near the highs over the past decade. Of the negative aspects, the unemployment rate rose from 3.9% to 4%, however, experts explain this growth did take place due to last American shutdown, which turned out to be the longest for all time. However, Non-farm report contains information that the closure of the US government did not affect the labor market.
On Friday, US markets closed the trading day mixed, and this best of all demonstrates some traders confusion after NON-FARM data. Indeed, earlier this week, the American regulator announced a completely different agenda for the markets. US dollar was also unable to show growth, although trading activity in FX markets remained quite high. It is likely that the markets will continue to analyze these data in today's trading and the current US dollar index growth is a good confirmation of this. It is interesting enough that 95.45-95.50 mark is a significant level for US dollar index and represents a strong resistance level. Let's see how events will develop on the US dollar index this week. Moreover, this week, support factors for USD dollar support- negotiations between China and the United States, will not be able to support the dollar. This week there will probably be no significant news on this topic due to the celebration of the Chinese New Year.
This trading week, the focus of markets is upon two main factors - the continuation of the corporate reporting season and President D. Trump speech with an annual report that will inevitably attract the attention of global markets.
90 American companies will report financial results this week, which will be one of the last big waves of the profit season in the fourth quarter. Today, the markets will analyze the reports of Google that publishes his results after Wall-Street close.
As for commodities, oil prices today attempted to gain to the level of nine-week highs, but the market failed to settle at these levels. After the test 63.60 mark, the market returned to the range. An attempt by the market to break out of a narrow lateral range is a sign that US sanctions against Venezuela’s exports help reduce supply and create an artificial market deficit. Corrective impulse for the gold market is exhausted in the area of the first support in 1310, here the bulls are trying to seize the initiative.
On FOREX, the US dollar growth is gaining momentum in relation to its main competitors, as strong employment data begin to have a greater positive effect on the US currency in light news background conditions.
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