- June 1, 2020
- Posted by: Analysis Team
- Category: FOREX, Weekly Analysis
During the upcoming trading week market participants look to the monthly jobs report from the US economy and a key interest rate decision from the European Central Bank. The Nonfarm payrolls job report headlines the economic docket this week, with most economists expecting another heavily negative monthly US jobs figure. Traders and investors also look to interest rate decisions from the European Central Bank, Bank of Canada, and Reserve Bank of Australia.
Manufacturing data is also on traders radar this week, with China, United Kingdom, EU, and United States PMI numbers all in focus. Gross Domestic Product data from the Australia economy and monthly jobs figures from the Canadian economy will also be closely watched.
Monday 1st June, EU Manufacturing PMI
The EU Manufacturing Purchasing Managers Index is released by Markit Economics and measures the activity level of purchasing managers in the manufacturing sector. The manufacturing PMI is an important indicator of business conditions and the overall economic condition in the eurozone because the manufacturing sector represents nearly a quarter of total GDP. A reading above 50 indicates expansion in the sector and below 50 indicates contraction.
- The EURUSD pair is only bearish while trading below the 1.1000 level, key support is found at the 1.0950 and 1.0900 levels.
- If the EURUSD pair trades above the 1.1000 level, buyers will likely test towards the 1.1200 and 1.1270 resistance levels.
Tuesday 2nd June, RBA Rate Decision
The Reserve Bank of Australia Rate Decision is the market interest rate on overnight funds, with the RBA standing as the central monetary authority for the Australian economy. The Reserve Bank of Australia is widely expected to keep interest rates on hold at this meeting, following recent rate cuts. RBA policymakers are also tipped to strike an overall dovish tone towards the economy and monetary policy.
- The AUDUSD pair is bearish while trading below the 0.6500 level, key support is found at the 0.6420 and 0.6300 levels.
- If the AUDUSD pair moves above the 0.6700 level, buyers may test towards the 0.6880 and 0.6940 levels.
Wednesday 3rd June, US ADP Jobs Report
The ADP Private Sector employment change jobs report is released by the US Automatic Data Processing Inc and measures the change in the number of people employed inside the American private sector. A rise of this figure is seen as positive and good for stimulating US economic growth, while a weaker-than-expected number is seen as bearish and a possible indicator for future economic weakness.
- The USDCHF pair is only bearish while trading below the 0.9790 level, further downside towards the 0.9610 and 0.9540 support levels seems possible.
- If the USDCHF pair trades above the 0.9790 level, buyers are likely test towards the 1.0000 and 1.0090 resistance levels.
Thursday 4th June, ECB Rate Decision
The European Central Bank’s interest rate decision is made by the ECB Governing Council on whether to either increase, decrease, or maintain interest rates. The key mechanism behind the monetary policy is the control of interest rates.
After the ECB Interest Rate Decision is announced, the European Central Bank holds a lengthy monthly press conference with ECB President Christine Lagarde delivering a prepared statement.
- The EURGBP pair is only bullish while trading above the 0.8880 level, key resistance is found at the 0.9080 and 0.9150 levels.
- If the EURGBP pair trades below the 0.8880 level, sellers may test towards the 0.8800 and 0.8710 levels.
Friday 5th June, US Nonfarm Payrolls Job Report
The NFP job report shows the monthly change in employment in the American economy, excluding the farming sector. The Non-farm payroll job report is the most carefully observed indicator in the employment situation inside the United States. It is considered the most inclusive calculation of job creation, which causes the Nonfarm Payrolls Job report to become highly significant to market participants, due to the great importance of labour in the United States economy.
- The USDJPY pair is bearish while trading below the 107.00 level, further losses towards the 105.50 and 104.50 levels remains possible.
- If the USDJPY pair trades above the 107.00 level, buyers are likely to test the 108.00 and 109.00 resistance levels.