Weekly Market Commentary | 29.04 – 05.05

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

• German CPI: The week starts quietly with only the German Consumer Price Index (CPI) anticipated, expected at 0.6%.

Tuesday

• Manufacturing and Non-Manufacturing PMIs from China: Both indices are forecasted to remain above the 50 threshold, indicating expansion.
• Eurozone CPI Flash Estimate: Expected to be at 2.4%.
• Canadian GDP: Projected to post a 0.3% increase.
• US CB Consumer Confidence: Anticipated to come in at 104.
• Earnings Reports: Key reports expected from Amazon, AMD, Coca-Cola, and McDonald’s.

Wednesday

• New Zealand Job Data: To start the day’s data releases.
• US ADP Non-Farm Employment Change: An important prelude to Friday’s non-farm payrolls.
• European Markets: Most will be closed.
• US Manufacturing PMIs and Job Openings: Further insights into economic activity and labor market.
• US Interest Rate Decision: Expected to remain steady at 5.5%, with a subsequent statement and press conference.
• Earnings Reports: Key results expected from Mastercard, Qualcomm, and Pfizer.

Thursday

• Swiss Inflation Data: Continues the week’s focus on inflation metrics.
• US Unemployment Claims: Weekly data to provide updates on the labor market.
• Apple Earnings: Highly anticipated results that could impact market sentiments.

Friday

• Bank Holidays: Quiet day expected in Asian markets with Japan and China observing holidays.
• US Non-Farm Payrolls: Expected at 243,000, a crucial indicator of employment health.
• US ISM Services PMI: Forecasted at 52, indicating continued expansion in the service sector.

Setups for This Week:

Gold

Primary View:

• The price of gold has formed a flag pattern, which is highlighted by red lines.
• A close below the lower red line would serve as a sell signal.

Alternative View:

• If the price breaks above the upper red line, it would be considered a buy signal.

USD/CAD

Primary View:

• The price is on a downward trend, constrained by a red downtrend line.
• Approaching a yellow horizontal support, a rebound off this support combined with a break of the red downtrend line would signal a buying opportunity.

Alternative View:

• A break below the yellow horizontal support line would be a sell signal.

EUR/USD

Primary View:

• The price is currently trading within a flag pattern and is at a horizontal resistance level.
• A move above this resistance would trigger a buy signal.

Alternative View:

• A rejection from the horizontal resistance and a break below the lower line of the flag pattern would be a strong sell signal.

Source: https://www.axiory.com/analytics/weekly-market-commentary/weekly-market-commentary-29-04-05-05