Top 5 Things to Know Before You Start Trading
This Wednesday a busy economic calendar will potentially affect trading. Gold and the British Pound are trading lower.
1 – Busy Calendar Includes ECB President Speech
Today’s calendar includes EU PMI’s and Consumer Confidence. European Central Bank (ECB) President is also expected to make a speech which will be highly unpredictable to the Euro (EUR) direction. Currency investors are looking forward to the Central Bankers speeches at Jackson Hole later this week prospect of the Federal Reserve keeping to its plan to tightened monetary policy later this year.
2 – Trump Threats Affect the Market
Overnight, Asian equities opened strong after the WS rally. USD/JPY filled offers in the 109.83 area but risk sentiment deteriorated after Donald Trump said he may end NAFTA at some point. Trump also threatened to shut down the US government if he wouldn’t get the funding to build a wall along the Mexican border. Risk sentiment improved yesterday supported by reports that the Trump administration and law makers are making progress on tax reform plans. US stock markets mirrored the positive development in Europe with S&P500 and Dow Jones closing 0.99% and 0.90% higher, respectively.
3 – NZD/USD Trading Lower
The NZD/USD declined after the government cut its growth forecasts. A setback in Iron ore weighed on the Aussie dollar. AUD/USD dropped below 0.79. EUR/USD was little affected by Trump comments and is trading at 1.1740
4 – GBP Trading Lower
Sterling continued trading with a negative bias yesterday. Cable drifted from the high 1.28 area early in Europe to close the session at 1.2824. Most of this move was due to a rebound in the US dollar, but Sterling also set a minor new low against the euro. Technically, GBP/USD trades around the 100-day moving average. A clean break below this line could open up for a test of the 12 July low at 1.2812 and thus induce more GBP weakness near term.
5 – Gold Lower
Gold prices fell on Tuesday, as strength in the US dollar pressured the precious metal. It is trading now at $1284. Market players are preparing for an annual gathering of central bankers, where the heads of the Federal Reserve and European Central Bank are set to deliver speeches on the outlook for monetary policy and interest rates.