Its Sunday and the day where the winners take control and losers make excuses. Sunday is a day for family but it is also a day to study the charts for the up and coming trading week. This is where you make your money by taking a look at the bigger picture, knowing where the market is going and where it is turning in the coming week. If you fail to plan , plan to fail!
Last week I was travelling around the world so did not look at the charts much but seeing as I planned to have a week off trading it didnt matter for me. I did keep up to date the news though, I mean who couldn’t, with that madman Assad doing a chemical attack on innocent people, ( or was that just a staged US plot ….?? ) then Trump shouting his mouth as he likes to do but with good reason I expect.
Syrian airstrikes: After markets closed, the US, the UK, and France attacked Syrian installations related to chemical weapons. The attack was surgical and apparently avoided hitting Russian soldiers. Nevertheless, President Vladimir Putin called it an act of aggression and tensions still run very high. Many other countries are involved, most prominently Iran and Israel which have also clashed around Syria. Things are about to get extremely interesting in this world that we live in.
China and US in a huge trade war which has sent the markets rallying one day and plummeting another day, its just crazy, but the best part about all this craziness is that traders are making huge money from all these swings…… Makes you think huh, just how manipulated these markets really are.
So as a result of the geopolitical tensions the US dollar had a bumpy week along with OK US data. What’s next? The upcoming week consists of US retail sales and housing data, and also a rate decision in Canada, Australian jobs, and more.
US inflation came out as expected: 2.4% on the headline and 2.1% on the core. Nevertheless, this is a significant rise that may imply another rate hike this year.
With all the tensions around Syria and the Middle East oil prices rallied to the highest level since 2014 last week and trade tensions waned as China and the US exchanged pleasantries and negotiations are the way.
In the euro-zone, mixed messages from the ECB helped the euro to recover while weak British manufacturing production only slightly hurt the pound. Sterling traders will be on their toes on Tuesday and Wednesday this week, waiting for the latest UK jobs, wages and inflation releases.
Benchmarks indices and currencies from the Dow to the Dollar continue to chop through volatility, but meaningful trends remain elusive. Can key event risk like China GDP or the BoC rate decision offer clarity to counter the general uncertainty of political risk?
The Australian Dollar market was clearly focused elsewhere Friday and didn’t react much to news of a Chinese import surge, and a rise in its trade surplus with the US.
US-China tariffs attacks may be on hold, but each party has begun to bring in allies. Also, China will release the first quarter GDP, having the Yuan at risk from home.
Equities Forecast: S&P 500, DAX & FTSE – Can the Bounce Sustain?
Last week risk appetite continue to firm up, but sustainability remains questionable; economic calendar on the light side, but there are other headline risks to watch.
Gold prices face US retail sales, Fed commentary and the central bank’s beige book. The anti-fiat asset could be vulnerable to swings in sentiment on geopolitical and trade developments.
Both Bitcoin (BTC) and Altcoins posted substantial gains last week. The majority of coins have increased to a double-digit rate, amid increasing confidence in crypto markets. EOS (EOS), NEO (NEO), and Cardano (ADA) are among prominent gainers and it appears there will be more gains in the coming weeks.