I’m Brad Alexander and in this week’s Market Blast Fundamentals let’s take a look at EURJPY, EURGBP; NZDUSD, Gold (XAUUSD), EURUSD, the NASDAQ (US100), and the S&P 500 (US500).
Last Friday Jerome Powell stated that the Fed may pause its pattern of Interest Rate rises in the June meeting.
US corporations always like the sound of this and the S&P 500 rose up trying to break resistance.
The NASDAQ rose as well with price action passing a point from last July.
Last Thursday’s US Unemployment Claims were lower than expected making the dollar slightly weaker which foreshadowed Chair Powell’s vision.
This has driven price action against the trend and we will look at this from the technical side tomorrow.
Gold has been falling for a couple of weeks now and may fall further if Joe Biden’s positive words yesterday about US/China relationships were to be believed.
XAUUSD has been trying to break this key level of support but keep an eye out for negative news on the US debt ceiling which could weaken the USD and cause turmoil driving price action higher.
The NZD had a strong pullback in the middle of the month but the strong trend continues today.
However, watch out for this Wednesday’s Interest Rate decision where the market is expecting a 0.25% increase.
The market will be watching the press conference by the Reserve Bank of New Zealand for hints on future decisions.
We will hear from Christine Lagarde and see some key German data this week as well.
We also see several speeches by Andrew Bailey and UK Retail Sales on the calendar this week.
GBP is weak against some major counterparts and strong against others and we will look at some technical opportunities tomorrow.
I mentioned Christine Lagarde of the ECB earlier so watch the charts as she may hint at an Interest rate rise.
The Euro is generally weak against everything except JPY.