Your Top 5 Things to Know this Monday
Today in our fundamental analysis: At the start of this week, we look at the major events you need to know before you start trading. US events will be in focus this week and today UK PMI data will be released. Gold prices are lower while oil prices are higher.
- For the week ahead, US events will be the major focus. The US dollar was the second weakest major currency last month as many of global central banks turned hawkish. There are a lot of doubts on whether Fed will deliver another rate hike in September.
- PMI (Purchasing Managers Index) data will be the main focus today. UK will release PMI manufacturing in the European session. Eurozone will release unemployment rate and PMI manufacturing final. Later in US session, the US will release ISM (Institute for Supply Management) manufacturing and construction spending.
- EUR/USD hit its highest in 14 months last week at 1.1443, on the back of speculation that European Central Bank (ECB) will start normalizing rates soon. On the other hand, the US looks to be caught in between the decision to raise rates again this year.
- Gold is currently at its lowest level since May at $1235. Gold prices came under pressure amid indications that several major central banks around the world are getting ready to join the Federal Reserve in tightening monetary policy.
- West Texas Intermediate (WTI) oil prices rose 2.9% to $46.2/bbl, which saw a 7.5% rise for the week as oversupply concerns eased. Stock markets look shaky. A lot of traders are suggesting that the low levels are a buying opportunity. Others fear that a larger scale correction is underway. Data this week will determine the direction.
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