The Week Ahead: 30th April - 4th May.
Last week was interesting, Gold continued its retreat from highs earlier this month in the $1360 region. But the decline doesn't look done, we might see a further fall or could this be the holding region before another rally, lets have a look!
Monday is not crazy, there are many releases with a few potentially worth watching. The US have their Core PCE Price Index and Personal Spending. These both aren't that important but are looking to be the most influential releases that could affect the Gold market on Monday. Maybe, the Chicago PMI might lead to little volatility in the Gold market during the evening period but realistically it will be limited.
We have the US ISM Manufacturing PMI Index on Tuesday which could create some movement. The expected shows about a 1 point decline from last month, but this really won't do too much to the market I don't feel. This is because much of the effect will be due to the rally we are seeing in the US Dollar, as it continues and is looking to hit 110 against the Yen soon. This alone is more powerful than any release so pay close attention to the majors in forex!
Wednesday has the US ADP Non-Farm Employment Change, which is forecast to decline by around 50k. This is pretty substantial, and might help stop the dollar hitting 110 against the Yen but who knows. This should help Gold recover for a little, maybe keeping it above $1310. Then later the US have their FOMC Statement and Fed Fund Rate, the rate is forecast to be holding steady at the 1.75% mark. So Wednesday will be a volatile day, the evening shall be interesting!
Thursday has another big release, the US ISM Manufacturing PMI, showing a slight decline from last month. We also have the US weekly Unemployment Claims, forecast showing a small increase and at the same time they release the Prelim Non-Farm Productivity. This is expected to have a 0.9% increase, which is big so pay attention to that!
The US's monthly Unemployment Rate is released Friday, expecting a slight fall from last month. As well, we have the Average Hourly Earning and Non-Farm Employment Change. The Non-Farm is forecast for a big increase which could push Gold further lower on Friday and thus it could be another interesting day for the precious metal!
This week is actually pretty busy after mid-week, we may see some further declines if events come in favour of the US Dollar which is looking likely. But another big factor is the declining political tensions with Korea. This is substantial and I do feel it will hold back further gains for the precious metal in the near future but the markets aren't exactly predictable so anything could happen!
The Naive Trader.
Forex Factory, 2018.
IG.com, 2018.
Monday is not crazy, there are many releases with a few potentially worth watching. The US have their Core PCE Price Index and Personal Spending. These both aren't that important but are looking to be the most influential releases that could affect the Gold market on Monday. Maybe, the Chicago PMI might lead to little volatility in the Gold market during the evening period but realistically it will be limited.
We have the US ISM Manufacturing PMI Index on Tuesday which could create some movement. The expected shows about a 1 point decline from last month, but this really won't do too much to the market I don't feel. This is because much of the effect will be due to the rally we are seeing in the US Dollar, as it continues and is looking to hit 110 against the Yen soon. This alone is more powerful than any release so pay close attention to the majors in forex!
Wednesday has the US ADP Non-Farm Employment Change, which is forecast to decline by around 50k. This is pretty substantial, and might help stop the dollar hitting 110 against the Yen but who knows. This should help Gold recover for a little, maybe keeping it above $1310. Then later the US have their FOMC Statement and Fed Fund Rate, the rate is forecast to be holding steady at the 1.75% mark. So Wednesday will be a volatile day, the evening shall be interesting!
Thursday has another big release, the US ISM Manufacturing PMI, showing a slight decline from last month. We also have the US weekly Unemployment Claims, forecast showing a small increase and at the same time they release the Prelim Non-Farm Productivity. This is expected to have a 0.9% increase, which is big so pay attention to that!
The US's monthly Unemployment Rate is released Friday, expecting a slight fall from last month. As well, we have the Average Hourly Earning and Non-Farm Employment Change. The Non-Farm is forecast for a big increase which could push Gold further lower on Friday and thus it could be another interesting day for the precious metal!
This week is actually pretty busy after mid-week, we may see some further declines if events come in favour of the US Dollar which is looking likely. But another big factor is the declining political tensions with Korea. This is substantial and I do feel it will hold back further gains for the precious metal in the near future but the markets aren't exactly predictable so anything could happen!
The Naive Trader.
Forex Factory, 2018.
IG.com, 2018.
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