All roads lead to the USD this week.
We have a very business economic calendar due for the USD this week.
1. Tuesday (Consumer Confidence)
2. Wednesday (ADP Non-Farm, Advanced GDP Q3, FOMC Meeting)
3. Friday (Non-Farm Payrolls and ISM Manufacturing PMI)
The highlight of the week will no doubt be the FOMC meeting on Wednesday. A 25-basis point rate cut has been fully priced into the markets, so we don’t expect a lot of reaction from the cut itself.
The biggest reaction will come from the accompanying statement and live press conference.
Some analysts suggest that the FED might deliver a ‘hawkish cut’ this week but given the big miss in recent data points other analysts are not convinced.
The sentiment of the USD going into Friday will be crucial for knowing how to trade Non-Farm Payroll and ISM Manufacturing PMI.
In this week ahead video we discuss our currency bias for the USD and also help you prepare for the upcoming USD risk events.
Highlights of the video:
00:38 – Baseline context for the USD
03:17 – Baseline expectations for the upcoming risk event
05:43 – Possible sentiment shifts
07:19 – Possible currency pairs to consider
08:11 – Learn more about phase one and two sentiment shifts
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