Your weekly, at-a-glance roundup

A Very Positive NFP Report Drives the Market

The non-farm payrolls (NFP) report showed a better-than-expected number for February. 379K fresh new jobs were added to the US economy and boosted the US Dollars. However, the total payrolls are 6.2% lower compared to the same period last year.

Federal Reserve Chair Jerome Powell announced on Thursday that he will not to push back against an increase in long-term borrowing costs. This news negatively affected gold. The precious metal dropped below 1,700 USD as U.S. Treasury yields rose, making non-interest-paying bullion less attractive.

Retail investors seem to have steadily been falling out of love with gold, too. Holdings in gold ETFs have dropped for two straight weeks — the longest stretch since December 2016 — according to data compiled by Bloomberg.

USD

On Wednesday, the Consumer Price Index (CPI) data will be released. The data is expected to be at 1.4%. If the actual data is higher, we expect the USD to appreciate.

EUR

On Thursday, the interest rate decision will be announced. The present interest rate is 0% and no surge in interest rates is expected.

CAD

On Friday, the unemployment rate data will be announced. The expected value is 9% and if the actual unemployment rate is lower, we expect the CAD to appreciate.

DOW

The NASDAQ dropped 8% last week and recovered some of the losses on Friday. If the price holds onto the current support level of 12200, there’s a high chance that it could shoot up to 13130.

GOLD & SILVER

Gold dropped around 50 USD last week due to a sudden surge in the US dollar. If the price holds onto the current support level of 1686, there’s a high chance that gold could move up to 1715 and 1727.

Setups for this week:

EURUSD

Primary View:

  1. The immediate resistance is seen near 1.19635
  2. The immediate support is seen near 1.19070
  3. The current price seems good for potential buyers
  4. Entry on pullback is also possible by keeping the stoploss below 1.18726
  5. The targets could be 1.19635 and 1.20000

Alternative View:

  1. If the price moves below 1.19070, we may see further downside movement.

EURGBP

Primary View:

  1. The immediate resistance is seen near 0.86809
  2. The immediate supports are 0.86000 and 0.85301
  3. The current price seems good for potential buyers
  4. Entry on pullback is also possible by keeping the stoploss below 0.85301
  5. The target could be 0.86809

Alternative View:

  1. If the price moves below 0.85301, we may see further downside movement.

GBPJPY

Primary View:

  1. The immediate resistance is seen near 150.500
  2. The immediate supports are 148.457 and 146.576
  3. The current price seems good for potential sellers
  4. Entry on pullback is also possible by keeping the stoploss above 150.500
  5. The targets could be 148.457 and 146.576

Alternative View:

If the price moves above 150.500, we may see further upside movement.

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About Author

Mithun Girishan

Mithun Girishan is the founder of MMM (Mithun’s Money Market), a consulting firm providing quality training programs in capital markets. He is an investor, trader, coach and a continuous learner. In addition, Mithun provides consultation and mentorship to many retail investors and company directors across the globe for investments, trading and hedging their wealth in stocks and futures. His passion lies in exploring new avenues in financial markets as well as learning theoretical and practical economics and its application in daily lives. This has exposed him to a wide range of markets spanning from equity, commodity, forex, futures to options.

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