Weekly Global Markets Technical Analysis Report – 09 May 2021

Global Markets Technical Analysis

Weekly Global Markets Technical Analysis Report – 09 May 2021

 Germany Manufacturing Purchasing Managers Index (PMI)

 WHEN:                                                                WHAT IT INFLUENCES:

3rd  May 2021                                                EUR and its subsequent 

                                                                             pairs

WHAT’S HAPPENING:

The German Manufacturing Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below indicates contraction. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.

A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.

 U.S. Fed Chair Powell Speaks

WHEN:                                                                 WHAT IT INFLUENCES:

3rd MAY 2021                                                   USD and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: 

Federal Reserve Chair Jerome Powell (Feb. 2018 – Feb. 2022) is to speak. As head of the Fed, which controls short term interest rates, he has more influence over the U.S. dollar’s value than any other person. Traders closely watch his speeches as they are often used to drop hints regarding future monetary policy.

U.K. Manufacturing Purchasing Managers Index (PMI)

WHEN:                                                               WHAT IT INFLUENCES:

4th May 2021                                                  GBP and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: 

The Manufacturing Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below 50 indicates contraction. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.

A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

Gold Has Best Week Since October on U.S. Payrolls Shock

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED

Gold had its best week in six months as shockingly low U.S. payrolls numbers for April, coupled with the yellow metal’s belated catch up to inflationary trends, gave it a gain of 3.5% on the week.

Price-wise, gold was nearing peaks last seen 12 weeks ago, closing in on the $1,850 per ounce level, that could set up a return to $1,900 and ultimately the $2,000 record highs attained in August.

“Gold’s short-term momentum could make a run towards the $1,857 level, which could be followed by a move towards the $1,925 resistance level,” said Ed Moya, head of research for Americas at online trading platform OANDA

Benchmark Gold Futures on New York’s Comex settled up $15.60, or 0.9%, at $1,831.30 an ounce. The session high was $1,844.40. For the week, gold futures showed a 3.2% gain, the highest since the week ended Oct. 29.

The spot price of gold rose by $16.35, or 0.9%, to $1,831.53, after a peak at $1,843.36. For the week, spot gold printed a much higher gain of 3.5%.

Oil Gains for 2nd Week, But Prices Range-Bound Again

WHAT IT HAD INFLUENCED:

BRENT & WTI CRUDE OIL

WHAT HAPPENED:  

Oil put in a second week of gains as crude prices reentered range-bound trading on Friday on concerns about slowing U.S. jobs growth and the Covid situation in No. 3 energy consuming nation India.

New York-traded WTI, the benchmark for U.S. crude, settled up 19 cents, or 0.3%, at $64.90 per barrel. WTI hit an eight-week high of $66.75 on Wednesday, before snapping a four-day rally. For the week, it showed a 2% gain.

London-traded Brent, the global benchmark for crude, also settled up 19 cents, or 0.3%, at $68.28. Brent hit an eight-week high of $69.94 on Wednesday, before losing its momentum. For the week, it was up 1.5%.

“Oil prices might have a positive second consecutive week, but it is nothing to get energy traders excited that oil will break away from its tightening trading range,” said Ed Moya, head of America’s research at online trading platform OANDA.

Pessimism grew again on the outlook for oil after the Labor Department reported on Friday that the U.S. unemployment rate rose to 6.1 percent in April as the country added a sharply lower-than-forecast 266,000 jobs in a pandemic-suppressed market.

Economists had expected as many as 1 million new U.S. jobs for last month, building on to the March gains of 916,000. That made what the Labor Department reported disappointing to many.

Expectations of runaway U.S. inflation in an economy sprinting from Covid-19 had fueled a rally across commodities since the start of the year, despite Fed attempts to assuage concerns that rising price pressures were only temporary. 

5 KEY EVENTS TO WATCH OUT

Australia Retail Sales MoM

 WHEN:                                                                WHAT IT INFLUENCES:

9th May 2021                                         AUD and its subsequent pairs                                                                   

WHAT’S HAPPENING: 

Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.

A higher than expected reading should be taken as positive/bullish for the AUD, while a lower than expected reading should be taken as negative/bearish for the AUD.

Germany ZEW Economic Sentiment

     WHEN:                                                               WHAT IT INFLUENCES:

11th May 2021                                       EUR and its subsequent pairs   

WHAT’S HAPPENING:  

The German Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment Index gauges the six-month economic outlook. A level above zero indicates optimism; below indicates pessimism. The reading is compiled from a survey of about 350 German institutional investors and analysts.

A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.

Bank of England Governor Bailey Speaks

WHEN:                                                               WHAT IT INFLUENCES:

11th May  2021                                                  GBP  and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: 

Bank of England (BOE) Governor Andrew Bailey (Mar 2020 – Mar 2028) is to speak. As head of the BOE’s Monetary Policy Committee (MPC) which controls short term interest rates, Bailey has more influence over sterling’s value than any other person. Traders scrutinize his public engagements for clues regarding future monetary policy. His comments may spark a short-term positive or negative trend.

U.S. Core Consumer Price Index (CPI) MoM

WHEN:                                                                WHAT IT INFLUENCES:

12th May 2021                                                  USD and its subsequent 

                                                                             Pairs 

WHAT’S HAPPENING: 

The Core Consumer Price Index (CPI) measures the changes in the price of goods and services, excluding food and energy. The CPI measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD

European Central Bank Monetary Policy Statement

WHEN:                                                                 WHAT IT INFLUENCES:

14th May 2021                                                    EUR  and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: 

European Central Bank Monetary Policy Statement contains the outcome of the ECB’s decision on asset purchases and commentary about the economic conditions that influenced their decision.

EQUITIES IN THE COMING WEEK

1. Panasonic(0QYR) to announce its Quarterly Results on 10th May 2021, EPS estimated to 9.24 per share while revenue estimated 1752.15B 

2. Walt Disney(DIS) to announce its Quarterly Results on 13th  May 2021, EPS estimated to 0.2707 per share while revenue estimated 15.85B.

3.United Malt (UMG)  to announce its Quarterly Results on 13th May 2021, EPS estimated to 12.00 per share while revenue estimated .630.6M

4. Burberry Group(BRBY) to announce its Quarterly Results on 13th May 2021, EPS estimated to 42.71  per share while revenue estimated 1.391M.

5. Sage (SGE) to announce its Quarterly Results on 14th May 2021, EPS estimated to 11.79 per share while revenue estimated 925.23M.

     TOP CURRENCIES IN THE UPCOMING  WEEK

USD/JPY 

Markets Technical Analysis

USD/JPY is trading in a upward channel, the Up side can be seen in the coming days.

 GBP/USD

Markets Technical Analysis

GBP/USD is trading in a Upward channel, the  Upside can be seen in the coming days

USD/CAD

Markets Technical Analysis

USD/CAD is trading in an Downward channel, the Down side can be seen in the coming days.

TOP INDEX TO WATCH OUT

DAX 30

Markets Technical Analysis

DAX 30 is trading in a Upward channel, the Up side can be seen in the coming days.

CAC 40 

Markets Technical Analysis

CAC 40 is trading in a upward channel, the Up side can be seen in the coming days.

NIKKEI  225

Markets Technical Analysis

NIKKEI 225 is trading in a upward channel, the Up side can be seen in the coming days.

TOP COMMODITIES TO WATCH OUT

GOLD

Markets Technical Analysis

Gold is trading in a upward channel, the Up side can be seen in the coming days.

Crude Oil

Markets Technical Analysis

 Crude Oil is trading in a upward channel, the Up side can be seen in the coming days.

TOP CRYPTO -CURRENCIES TO WATCH OUT

Bitcoin

Markets Technical Analysis

Bitcoin is trading in a upward channel, the Up side can be seen in the coming days.

RIPPLE

Markets Technical Analysis

Ripple is trading in an upward channel, the Up side can be seen in the coming days.

 DATA WATCH

Markets Technical Analysis

About Author