schedule-of-weekly-market-report-analysis

Down 0.58% in the first week of May, the US dollar index, calculated by factoring in the exchange rates of six major world currencies, failed to overthrow weekly resistance at 97.72 despite printing its first weekly close above the base since May 2017 the week prior.

Wednesday witnessed the FOMC hold the Federal Funds Rate at between 2.25-2.50%.

Fed’s Powell also talked up the US economy, consequently offering the greenback some much-needed respite.

Friday, however, observed a kneejerk move higher on the strong headline non-farm payrolls, though was swiftly faded as focus turned to the average earnings growth miss and the participation rate surprisingly declining.

Meanwhile, in other currencies:

Getting ready for Second Brexit referendum

Pushing out a reasonably handsome gain of 2.03% against its US counterpart, sterling concluded the week a considerable distance above its 1.31 handle.

Cable advanced strongly Tuesday, seeing upside on reports the opposition Labour Party had opted to back a second Brexit referendum if it cannot secure a general election or come to an agreement with the government.

Price action maintained momentum Wednesday, reinforced by better-than-expected Markit manufacturing PMI.

Despite a mild dip in price Thursday, the currency witnessed a pivotal recovery emerge Friday, with US non-farm payrolls seemingly the catalyst amid a lack of other fundamental drivers.

Faster-than-anticipated pickup in the Eurozone economy

The euro also concluded the week in positive territory vs. the dollar, up 0.55%.

Technically the candles are seen testing the underside of 1.12, which happens to be shadowed closely by April’s opening level at 1.1221.

While selling could emerge from either barrier this week, both the weekly and daily time-frames display notable demand in motion.

A faster-than-anticipated pickup in the Eurozone economy during the first quarter, as well as a diminishing greenback, elevated the EUR/USD early week, though encountered resistance mid-week following FOMC movement.

While sellers continued to dominate Thursday, Friday’s session wrapped up firmly in the green after a mixed US employment report.

US Unemployment Rate at the historical low

On Friday, the United States published fairly optimistic statistics on the labor market, which supported the demand for “greenback”.

In April, the average hourly earnings counted to 0.2%, which was below market expectations of 0.3%.

At the same time, the last indicator was revised from 0.1% to 0.2%.

In the nonfarm sector of the country, 263,000 new jobs were created, which was significantly higher than the forecasted value of 181,000.

The unemployment rate fell from 3.8% to 3.6%.

Financial market participants expect meetings of the Central Banks of Australia and New Zealand.

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Schedule of Important Economic News and Events of the week

In the upcoming trading week, we recommend paying attention to the following macroeconomic events.

Monday, May 6th 2019

On Monday, the news feed will be fairly calm.

We recommend paying attention to economic releases from the Eurozone at 11:00 (GMT+3:00).

The financial markets of the UK and Japan will be closed due to holidays.

Tuesday, May 7th 2019

On Tuesday, the Reserve Bank of Australia will announce its decision on the key interest rate at 07:30 (GMT+3:00).

The regulator is expected to leave the key marks of monetary policy unchanged.

Important economic reports:

  • Retail sales in Australia at 04:30 (GMT+3:00);
  • JOLTS job openings at 17:00 (GMT+3:00);
  • Canada Ivey PMI at 17:00 (GMT+3:00).

Wednesday, May 8th 2019

On Wednesday, the Reserve Bank of New Zealand will announce its monetary policy decision at 05:00 (GMT+3:00).

Experts forecast that the regulator will reduce the interest rate by 25 basis points to 1.50%.

At 14:30 (GMT+3:00), financial market participants will assess the account of the last ECB monetary policy meeting.

Thursday, May 9th 2019

On Thursday, we expect the publication of important economic releases:

  • Consumer price index in China at 04:30 (GMT+3:00);
  • Initial jobless claims in the US at 15:30 (GMT+3:00);
  • Producer price index in the US at 15:30 (GMT+3:00).

Friday, May 10th 2019

On Friday, the trading week will end with the publication of important economic reports:

  • UK GDP at 11:30 (GMT+3:00);
  • Manufacturing production in the UK at 11:30 (GMT+3:00);
  • Report on inflation in the US at 15:30 (GMT+3:00);
  • Statistics on the labor market in Canada at 15:30 (GMT+3:00).

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