schedule-of-weekly-market-report-analysis

The US dollar, in DXY terms, slipped into further losses in recent movement, extending the pullback seen from the 2019 highs of 98.33 set at the end of April.

A disappointing US core PPI number Thursday, followed by weak CPI Friday, along with heightened US-China trade angst, collectively weighed on the greenback, down 0.16% on the week.

From a technical viewpoint, weekly resistance at 97.72 is proving a challenging barrier to overthrow.

Traders are urged to keep a long-term eye on the monthly supply-turned support area at 95.13-92.75 as a potential downside target, in the event we continue exploring lower ground.

Meanwhile, in other currencies:

Risks of a breakdown in trade talks between the US and China

The single currency nudged higher for a second consecutive week, up 0.28% vs. the dollar at the close of trade.

The EUR/USD started the week around 1.1177, marginally lower than Friday’s close, after concerns resurfaced regarding US tariff threats.

Mid-week, however, observed price action punch out of its weekly range to a high of 1.1251, bolstered on the back of broad-based USD weakness – US players came in and sold the buck on risks of a breakdown in trade talks between the US and China.

On the other side of the spectrum, the technical picture shows weekly price threatening a possible recovery out of demand at 1.1119-1.1295, though is hindered by a long-term daily channel resistance extended from the high 1.1569.

UK market after Brexit

Down 1.30% vs. its US counterpart last week, the British pound remains under pressure as Conservative and Labour Parties were on the verge of ending discussions to find a compromise on a path forward through Brexit.

Technically speaking, the GBP/USD concluded the week at 1.30, a widely watched figure and one that’s likely to offer support in early trading today.

Contrary to this, however, the daily candles are suspended just north of the 200-day SMA, currently priced at 1.2958.

This, therefore, could drag the market beyond 1.30 to bring in buyers off the SMA before rotating higher.

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Schedule of Important Economic News and Events

Last week, the US dollar weakened against a basket of world currencies.

The dollar index (#DX) updated monthly lows and closed in the negative zone.

The US currency is still under pressure amid the escalation of the trade conflict between Washington and Beijing.

On Friday, duties $200 billion worth for Chinese imports were increased from 10% to 25%.

At the same time, the US President Donald Trump said that he demanded to prepare for the introduction of new duties $325 billion worth.

China has threatened to respond.

Chinese Vice Premier Liu He stayed in Washington on the second day of trade talks.

This fact was perceived by financial market participants as a persistent desire of the two parties to reach a trade agreement.

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

Monday, May 13th

On Monday, the news feed will be calm. The publication of important economic releases is not planned.

Tuesday, May 14th

On Tuesday, investors will assess the following statistics:

  • Report on the labor market in the UK at 11:30 (GMT+3:00);
  • German ZEW economic sentiment index at 12:00 (GMT+3:00).

Wednesday, May 15th

On Wednesday, we also expect the publication of important economic reports:

  1. Industrial production in China at 05:00 (GMT+3:00);
  2. German GDP at 09:00 (GMT+3:00);
  3. Statistics on US retail sales at 15:30 (GMT+3:00);
  4. Core consumer price index in Canada at 15:30 (GMT+3:00).

Thursday, May 16th

On Thursday, we expect data on the labor market in Australia at 04:30 (GMT+3:00).

At 15:30 (GMT+3:00), investors will assess statistics on the US real estate market, as well as the US Philadelphia Fed manufacturing index.

Friday, May 17th

On Friday, the trading week will end with the publication of the report on inflation in the Eurozone at 12:00 (GMT+3:00).

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