Weekly Market Outlook: February 4-8
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Let’s consider the most important events for the upcoming days.
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Tuesday will be highlighted by the economic data from Australia. Retail Sales figure and the rate statement of the Reserve Bank will determine the direction of the Australian dollar.
On Wednesday, traders will be able to trade the New Zealand dollar on the jobs data.
On Thursday, you should pay high attention to the Bank of England meeting. The last week was negative for the British currency. Still, there is no progress on the Brexit deal. If the central bank sounds hawkish, the GBP may recover. In the case of the cautious tone, the currency will suffer.
On Friday, Canadian dollar’s traders will get an opportunity to trade on the jobs data.
What about the market moves?
Will GBP/USD resumes the uptrend?
Last week, the GBP/USD pair failed to strengthen its uptrend because of the many uncertainties around the Brexit deal. This week, traders should pay attention to the meeting of the Bank of England. In the case of the weak USD and the hawkish central bank, the pair will be able to recover. The first resistance to break is at 1.3218. However, technical indicators signal the weakness of the GBP. The first important support lies at 1.2920.
Is the NZD/USD pair forming the uptrend?
The New Zealand dollar was quite strong for past days. The jobs data will affect the direction of the pair. To confirm the uptrend, the pair needs to break the resistance at 0.6970. If the jobs release is weak, the New Zealand dollar may suffer. The first support is at 0.6825.
Will gold weaken? Last week gold managed to reach highs of April 2018. The rise was significant, so the pair may start depreciating soon. To keep rising, the pair needs to stick above 1,326. In the case of the weakness, gold will move towards 1,304. The next support is at 1,290.