Weekly Global Markets Technical Analysis Report – 18 April 2021

Weekly Global Markets Technical Analysis Report – 18 April 2021

Gross Domestic Product (GDP) YoY, UK

 WHEN:                                                                WHAT IT INFLUENCES:

 13 th APRIL 2021                                                GBP and its subsequent 

                                                                             pairs

WHAT’S HAPPENING:

Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health. 

     European Central Bank President Lagarde Speaks,ECB

WHEN:                                                                 WHAT IT INFLUENCES:

14thApril 2021                                                   EUR and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: 

European Central Bank (ECB) President Christine Lagarde (November 2019 – October 2027) is to speak. As head of the ECB, which sets short term interest rates, she has a major influence over the value of the euro. Traders watch her speeches closely as they are often used to drop subtle hints regarding future monetary policy and interest rate shifts. 

U.S. Core Retail Sales MoM, US

WHEN:                                                               WHAT IT INFLUENCES:

15th APRIL 2021                                                  USD and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: 

Core Retail Sales measures the change in the total value of sales at the retail level in the U.S., excluding automobiles. It is an important indicator of consumer spending and is also considered as a pace indicator for the U.S. economy.

Buying gold when it looks worst 

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED

The tidal wave of central bank liquidity and tsunami of government stimulus programs caused by the global pandemic is highly inflationary. The bond market is signaling rising inflationary pressures. The pandemic’s financial legacy will last for years, if not decades, as deficits are rising, and fiat currency values are declining. The US dollar index may have rallied by 3.72% in Q1, but it could be the healthiest horse in the glue factory that houses fiat currencies.

The correction in the yellow metal since last August could be a golden opportunity for investors. Gold has been a means of exchange for thousands of years, and its role in the global financial system is not changing any time soon. Buying gold when it looks worst has been the optimal approach for investing over the past two decades.

Oil Up 6% on Week, Volatility Could Return

WHAT IT HAD INFLUENCED:

BRENT & WTI CRUDE OIL

WHAT HAPPENED:  

Oil prices settled up 6% on the week after an unexpectedly large U.S. crude drawdown, but volatility could return to the market as worries about the impact of Covid-19 variants counter signs of improving fuel demand.

Bullish U.S. economic data — including a spike in retail sales and housing starts and tumble in jobless claims — are giving investors in oil and other risk assets optimism of a better-than-expected recovery from the coronavirus pandemic.

But that confidence is also being offset by a surge in hospital visits by teens and young adults, many carrying the B.1.1.7, the coronavirus variant first identified in the U.K. that public health officials say is now the most common strain circulating in the U.S. The variant is highly contagious, thought to be about 60% more transmissible than the original strain of the virus. 

The matter was concerning enough for the White House to announce on Friday that it was setting aside $1.7 billion to monitor, track and defeat emerging Covid-19 variants threatening pockets of the country.

5 KEY EVENTS TO WATCH OUT

Eurozone Interest Rate Decision:-

 WHEN:                                                                WHAT IT INFLUENCES:

 22nd APRIL 2021                                         EUR and its subsequent pairs                                                                   

WHAT’S HAPPENING: 

The six members of the European Central Bank (ECB) Executive Board and the 16 governors of the euro area central banks vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.

A higher than expected rate is positive/bullish for the EUR, while a lower than expected rate is negative/bearish for the EUR .

    Germany Manufacturing Purchasing Managers Index (PMI)

     WHEN:                                                                 WHAT IT INFLUENCES:

23rd APRIL 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.

 U.K. Composite Purchasing Managers’ Index (PMI), U.K.

WHEN:                                                               WHAT IT INFLUENCES:

23rd APRIL 2021                                                  GBP and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: 

The Composite PMI Index measures the activity level of purchasing managers in the both sectors. A reading above 50 indicates expansion in the sector; a reading below 50 indicates contraction. 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.

U.S. New Home Sales

WHEN:                                                                WHAT IT INFLUENCES:

23rd APRIL 2021                                                  USD and its subsequent 

                                                                             Pairs 

WHAT’S HAPPENING: 

New Home Sales measures the annualized number of new single-family homes that were sold during the previous month. This report tends to have more impact when it’s released ahead of Existing Home Sales because the reports are tightly correlated.

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.

U.S. Initial Jobless Claims

WHEN:                                                                 WHAT IT INFLUENCES:

22nd APRIL 2021                                                    USD and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: 

Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

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

EQUITIES IN THE COMING WEEK

1. Coca-Cola(KO) to announce its Quarterly Results on 19th April 2021, EPS estimated to 0.4999 per share while revenue estimated 8.64B. 

2. IBM(IBM) to announce its Quarterly Results on 19th  April 2021, EPS estimated to 1.68 per share while revenue estimated 17.36B.

3.Intel (INTL) to announce its Quarterly Results on 22nd April 2021, EPS estimated to 1.14 per share while revenue estimated 17.77B.

4. Mazda Motor (7261) to announce its Quarterly Results on 23rd April 2021, EPS estimated to 37.56  per share while revenue estimated 907.58B.

5.American Express (AXP) to announce its Quarterly Results on 23rd April 2021, EPS estimated to 1.58 per share while revenue estimated 9.23B.

     TOP CURRENCIES IN THE UPCOMING  WEEK

EUR/USD 

Technical Analysis

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

AUD/USD 

Technical Analysis

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

GBP/USD

Technical Analysis

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

TOP CRYPTO CURRENCY TO WATCH OUT

BITCOIN

Technical Analysis

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

TOP INDEX TO WATCH OUT

Euro stoxx 50

Technical Analysis

EURO STOXX 50 is trading in a upward channel, the Up side can be seen in the coming days.

DAX 30

Technical Analysis

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

TOP COMMODITIES TO WATCH OUT

GOLD

Technical Analysis

GOLD is trading in a Parallel channel, Further Up side can be seen in the coming days if it breaks 1758.2 and downside can be seen if it breaks 1676.57

Brent Oil

Technical Analysis

Brent is trading in a Parallel channel, Further Up side can be seen in the coming days if it breaks 68.00 and downside can be seen if it breaks 62.27

 DATA WATCH

Technical Analysis

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