Weekly Market Commentary | 02.01 – 08.01

Want 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>

– 2nd of January is still a holiday in many countries. Markets in Japan, China, Switzerland, the UK, Canada, and the US are closed

– Monday is also a Manufacturing PMI day in Eurozone. In all countries, PMI is expected to come way below 50

Tuesday>

– On Tuesday, we will have a continuation of the PMI data: Manufacturing PMI from Switzerland and Final Manufacturing PMI from the UK and US

– We will also find out the German Prelim CPI number, where -0.7% m/m is expected

Wednesday>

– We start with the inflation number from Switzerland, where a drop of -0.1% is forecasted

– The day will finish with the ISM Manufacturing PMI and JOLTS Job Openings from the US

-The crème de la crème will be the FOMC Meeting Minutes published at the end of the American session

Thursday>

– It’ll be a fairly quiet Thursday with the ADP Non-Farm Employment Change as the main data in the calendar. In addition to this, we will get the Crude Oil Inventories

Friday>

– Friday will be by far the busiest day in the calendar in the past two weeks. It is the first Friday of the month, so a NFP day!

– NPF is expected to come at 200K, which would be a significant decline from the last month’s 263K. The unemployment rate is expected to remain the same at 3.7%

– We will also get job data from Canada as well as the ISM Services PMI from the US

Setups for This Week:

USDJPY

Primary View:

The pair starts a new year on a key, long-term support

131 is a crucial level since the end of April

Breakout can be a proper, long-term sell signal

Alternative View:

Price bouncing off this level will be a great buy signal

EURAUD

Primary View:

The EURAUD is currently testing a key, mid-term horizontal support

This is the upper line of the sideways trend that was present in October and November (green)

This is a great chance to initiate a bullish bounce

Alternative View:

Price dropping below that support would be a key sell signal here

GBPUSD

Primary View:

GBPUSD spent Christmas-NYE trading inside of the pennant formation (black lines)

Price breaking out of this pennant will show us a direction for the first days of the 2023

Price breaking the upper line would give us a signal to buy and price breaking the lower line of this formation would give us a signal to sell