The only piece of potentially market-moving news over the weekend was North Korea saying it has successfully tested a hydrogen bomb. The response from USA, South Korea, China, France was harsh. Trump said “The United States is considering, in addition to other options, stopping all trade with any country doing business with North Korea”.There may be scope for an escalation of these tensions yet. Going onto the usual market moving events due this week, we have the RBA, BOC & ECB rate announcements. Just don’t expect much from Monday with the US closed for Labour day.
USD: In the United States, investors will be listening to Fedspeakers in order to better understand the implications of Friday’s dismal NFP report. We also get Trade Balance and ISM non-manufacturing PMI.
EUR: The ECB will provide an update on its monetary policy, but we will also see Germany factory orders and industrial production, foreign trade and construction PMI.
GBP: This week we get the 3 big PMI reports (Construction, Services & Manufacturing).
CAD: All eyes will be on the BoC interest rate decision, but don’t forget the other influential data points: Trade Balance, Ivey PMI and unemployment rate.
AsiaPac: In China, participants will be watching external trade, inflation rate, producer prices and Caixin services PMI. But more action will come from Australia. We get the RBA rates decision, GDP, balance of trade, current account, retail sales. For New Zealand we get the usual GDP auction.
Going into the week, pending any distraction from North Korea, I will remain bullish on Nasdaq, Crude Oil and Gold. I remain bullish on the Loonie and bearish on Nzd.
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