Weekly Market Review September 05

All U.S. based assets including stocks and indices will be unavailable for trading today due to Labor Day celebrations in the United-States. Following this, all U.S. exchanges and trading floors are expected to remain closed for the entire day. Traders are advised to keep in mind that commodities such as OIL, Gold, Gold/EUR and Silver will be available on European session only. Trends on the market today will give indications on how the market may resume tomorrow.

Also, keep in mind that other trading markets apart from that of the U.S. are open for trading. While the United-States and Canada celebrate their respective Labor Day, elsewhere UK readies for its services PMI data release at 08:30 GMT today. Moreover in the Eurozone, the retail sales data is expected for release at 09:00 GMT. In the crude market, prices dipped more than expected as seen on the ICE futures exchange in London. Brent oil for November delivery slipped by 0.81 percent to trade at $46.45 a barrel.

As markets resume normally tomorrow, bearish trails from the last Nonfarm payrolls are expected to create slight volatility. The Eurozone GDP yearly and quarterly GDP data are expected for release at 09:00 GMT. Later tomorrow, the U.S. services PMI data is awaited for release around 13:45 GMT, followed by U.S. ISM non-manufacturing PMI data at 14:00 GMT. On Wednesday, at 08:30 GMT, the UK manufacturing production will be available. On the same day, more data from the UK will be the highlights, with Bank of England Carney expected to deliver his speech at 13:15 GMT and at the same time the inflation report hearings will be held. Later that day, Japan will deliver its GDP data at 23:50 GMT. The Eurozone will be the highlight of the day on Thursday with deposit facility rate and interest rate decision data releases at 11:45 GMT. At 12:30 GMT on the same day, ECB president Draghi is expected to deliver his speech. Do not miss U.S. crude oil inventories at 15:00 GMT on the same day. On Friday, UK trade balance data will be released at 08:30 GMT while Eurogroup meetings is scheduled at 13:00 GMT. It’s a week laden with extremely worthy news, therefore keep an eye on the evolution of the market.

Technical Analysis:
Odds created on the market due to nonfarm payrolls have not been able to really boost all the currencies. With the Fed market being closed due to Labor Day celebrations in the United-States, markets will resume gradually. Probably more action will be seen as from tomorrow. On Friday, the pair EURUSD session initiated around the 1.119 level and fell to the 1.117 level within the first few hours of trading. Later the pair resumed its previous ascent, but was eventually brought down to the 1.115 level where the session closed. Today, the pair was seen slowing around the same vicinity and this pair may not be available for trading. The USD may trend lower as from tomorrow, therefore keep an eye on this pair.
All U.S. based assets are expected to remain unavailable for trading today due to Labor Day celebrations in the United-States. The USDJPY halts around the 103.6 level and may be unavailable for trading for today. The fate of the currencies is currently tied to the sort of the NFP obtained on Friday which was bearish compared to the last reading. This pair is awaited to resume normal trading as from tomorrow, but still may trend on a lower note. On Friday, the pair USDJPY was seen starting the session around the 103.2 level and slowly picked momentum to reach at the 104.1 level. After the NFP, this pair consolidated before closing the session at the 103.8 level.

The UK trading market remains operational just like to Eurozone, but the GBPUSD pair might not be available for trade. A look at yesterday’s session shows that the pair GBPUSD session commenced at the 1.327 level and consolidated to fall around the 1.325 level. Later on, the pair hiked up to the 1.33 level and fell 1.328 level, where the session came to a halt. This pair may resume proper trading trend tomorrow and as US nonfarm payrolls fell and this pair slightly rose up. Until tomorrow, traders are advised to keep an eye on this pair’s trend, in order to trade safely on this pair.
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