A Busy week for Trader
This week is going to be a busy week for trader as there are so many important economic events coming up across the global economy. The busiest day will be on Wednesday, we have the UK GDP data, US trade balance, crude oil inventory, FOMC statement, US interest rate decision, Interest rate decision for New Zealand as well as monetary policy statement from New Zealand and lastly, Bank of Japan monetary policy statement as well as interest rate decision. The big deal about the events on Wednesday is that most events coming during the European and America trading session will be released within 1hour interval. This means, traders will have to be quick to react and be so attentive.
Looking at the market this morning, JPY is a bit strong this morning as USDJPY has come off the weekly high of last week which is a strong resistance at 112.1. Cable is also holding below the 1.446 resistance level. This might actually trade lower to 1.40 considering we are gradually getting closer to the UK referendum which poses a lot of risk and uncertainty to GBP. Euro remains really weak as we might fall back to below 1.120.
However, all eye will be on the FOMC statement later this week. Market will be expecting the FED to give more insights into possibility of rate hike in 2016. The last FOMC statement was rather so dovish and it sends the US Dollar down across the board. A dovish FOMC this week will see another sell off on USD and the DXY might drop the below $90. Gold might rebound from the lows and rally backs to the highs at around $1260. Bank of Japan hints the market about possibility of more stimulus, their monetary statement on Wednesday will confirm this and JPY might drop again and stock market will rally.