As we head into the week, several economic events are set to significantly influence the markets. Here’s a concise overview of the most impactful releases and speeches for day traders:
Tuesday
The ISM Manufacturing PMI (USD) will be a key highlight, offering crucial insights into the manufacturing sector's health and affecting the USD. Additionally, Japan’s 10-Year JGB Auction (JPY) could impact the JPY, while speeches by Bundesbank officials Claudia Buch and Joachim Nagel (EUR) may influence the EUR.
Wednesday
Focus will shift to the Jibun Bank Japan Services PMI (JPY) and the Caixin Services PMI (CNY), both vital for assessing economic activity in their regions. In the Eurozone, the HCOB Eurozone Services PMI and HCOB Germany Services PMI (EUR) will provide valuable insights into service sector performance. Speeches by ECB’s Elderson and German Buba’s Mauderer (EUR) could also impact EUR dynamics. In the U.S., the Trade Balance and Factory Orders (USD) will be crucial for understanding economic trends, with the Beige Book offering further economic outlook insights.
Thursday
Day traders should pay close attention to the ADP Nonfarm Employment Change and Jobless Claims (USD), as these offer early signals ahead of the official employment report and impact the USD. German Factory Orders (EUR) will be significant for the EUR, reflecting industrial activity in Europe’s largest economy.
Friday
The standout will be the U.S. Nonfarm Payrolls (USD) report, a critical data point for assessing the labor market and influencing the USD. Other key releases include the U.S. Unemployment Rate and Average Hourly Earnings. In Canada, employment data (CAD) will be essential for the CAD, while Germany’s Industrial Production and ECB member Frank Elderson’s (EUR) speech will be important for the EUR.
Keep a close eye on these events as they unfold, as they are likely to create volatility and trading opportunities throughout the week.
DXY
Daily chart: The Dollar found support at $100.51 and has since rebounded to approximately $101.66, approaching the previous fractal level at $102.16 which acted as support. This level may now serve as resistance, potentially leading to a retest of recent lows. We will be closely monitoring for patterns forming below the support fractal, specifically a bullish crab pattern around $99.81.