Weekly Market Commentary | 05.02 – 11.02

Weekly Market Commentary | 05.02 – 11.02
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!
  • The week kicked off with Caixin Services PMI from China, hitting the mark at 52.7, aligning with market expectations.
  • The day is set to conclude with the anticipated ISM Services PMI from the US, with forecasts suggesting an uptick to 52, indicating potential optimism in the services sector.
  • Australia's interest rate decision is on the radar, with predictions favoring a steady rate at 4.35%. The accompanying statement and subsequent press conference will be scrutinized for future monetary policy clues.
  • The UK’s construction PMI is expected at 47.2, potentially reflecting ongoing challenges in the sector.
  • Canada's Ivey PMI, anticipated at 55, will offer insights into the business climate.
  • The day wraps up with Bank of Canada Governor Macklem’s speech, alongside crucial job data from New Zealand, highlighting an expected unemployment rate jump to 4.3%.
  • A relatively subdued Wednesday features speeches from FOMC members Kugler and Barkin, providing investors with insights into the Federal Reserve's perspective.
  • China's inflation data is forecasted to dip to -0.5%, suggesting deflationary pressures.
  • The US will release its weekly unemployment claims, a consistent measure of labor market health.
  • FOMC member Barkin takes the stage again, potentially offering more depth into the Fed's current economic assessment.
  • The day concludes with a speech from Reserve Bank of Australia Governor Bullock, likely shedding light on Australia’s economic outlook.
  • Canada's job market will be under the spotlight, with unemployment expected to inch up to 5.9%, providing a glimpse into the country's economic resilience.
Setups for This Week:
Primary View:
  • GBPUSD has been exhibiting a sideways movement within a symmetric triangle pattern highlighted in red.
  • The previous week concluded with a significant bounce off the upper boundary, culminating in a breakthrough below the triangle's lower edge.
  • The commencement of the new week finds the pair trading beneath the triangle's lower boundary, simultaneously challenging a pivotal horizontal support at 1.262, delineated in green. A daily close below this green mark would confirm a sell signal.
Alternative View:
  • A rebound into the confines of the symmetric triangle would negate the bearish outlook and indicate a potential buy opportunity.

Primary View:
  • A prominent head and shoulders formation is evident on the AUDUSD daily chart.
  • Recently, there was a breach of critical horizontal support, identified with a green line, thus triggering a sell signal.
Alternative View:
  • Should the price ascend above this green threshold once more, it would invalidate the bearish scenario and suggest a bullish signal.

Primary View:
  • USDCHF has successfully broken free from a flag formation, depicted with red lines, heading northward.
  • This escape is viewed positively and is interpreted as a cue to buy.
Alternative View:
  • A retreat back into the flag's territory would reverse the optimistic sentiment, indicating a sell signal.
Show More Articles
Axiory uses cookies to improve your browsing experience. You can click Accept or continue browsing to consent to cookies usage. Please read our Cookie Policy to learn more.