Weekly Market Commentary | 23.01 – 29.01

Curious to know what’s happening on the markets this week? Take a quick tour of the latest news, economic updates, and trading setups that will keep you up-to-date and in the know.

Monday>

– The Chinese market closes for the week due to The New Year celebrations

– After the European session close, we will get a speech from the ECB President Lagarde

– Australia will reveal their PMI

Tuesday>

– Tuesday is definitely a PMI day. We will learn data from Japan, France, Germany, Eurozone, the UK and the US, with most of them expected below the magical barrier of 50

– Tuesday will finish with the inflation data from New Zealand expected to come at 1.4% q/q

Wednesday>

– Wednesday will start with the inflation numbers from Australia, where the yearly number is expected to come at 7.5%

– We should also see a rise in the interest rate in Canada (25bp), along with the Monetary policy report and the Bank of Canada statement. A press conference from the BoC will follow one hour after the decision

Thursday>

– The most important data will come from the US, where we will find out the GDP expected to come at 2.6% q/q. This data will come along with the Durable Goods Orders and the usual Unemployment Claims.

Friday>

– Friday will be fairly quiet with no major news apart from the Core PCE Price Index from the US, which is expected to come at 0.3%

Setups for This Week:

GBPJPY

Primary View:

The pair created an inverse head and shoulders pattern promoting the breakout to the upside

We already broke the neckline of this formation

The only obstacle left now is the January high around the 161.1

Alternative View:

If the price fails to close the week above the blue area, we will get a proper sell signal

USDJPY

Primary View:

The USDJPY continues trading inside of the channel down pattern

We are close to the resistance and price closing the day above 131.6 would be an amazing opportunity to buy

Alternative View:

USDJPY bouncing off the upper line of the channel down pattern will be a proper signal to go short

WTI Oil

Primary View:

WTI Oil has a genuine buy signal coming from the inverse head and shoulders pattern (orange)

We already broke the neckline (black) and the major down trendline (red)

Alternative View:

Oil dropping below the black and red line would be a proper signal to go short