Over the weekend, the Prime Minister of Great Britain, Theresa May, expressed concern over a possible Scottish referendum. This drove the the pound down on the market opening.
Looking at price action for this year of 2017, we can see that cable is bouncing along support at roughly $1.39 and News Sentiment is fully Bullish this morning.
If you are trading Cable or the Pound crosses this week, watch out for Wednesday’s Manufacturing PMI, Thursday’s Construction PMI, and Friday’s Services PMI. These Purchasing Managers’ Indices are critical leading indicators of the UK economy and, in light of the ongoing process of Brexit, these are even more important.
We also have the Pound on support against the Australian Dollar. GBPAUD has been on a down trend, literally since the new year and News Sentiment is still very bearish.
Looking at Daily Market Alerts over the last 8 days, every single one called for AUD strength against the USD, the Loonie and the Kiwi. So, before trading be sure to check your News Sentiment widgets and Market Alerts and, this week, watch out for Wednesday’s Quarterly GDP figures where analysts are predicting a significant rise over last quarter’s.
We have a lot of activity from Washington this week with today’s Durable Goods Orders, Tomorrow’s Quarterly GDP and Consumer Confidence data.
Tuesday evening in Washington, we can look forward to a speech from President Donald Trump which always seems to affect the currency and equity markets, followed Wednesday by the Monthly Manufacturing PMI.
Thursday, we have unemployment claims and Friday Non-manufacturing PMI followed by speech from Janet Yellen in Chicago.
Looking at the USD Majors the charts show that dollar is weaker over last week and News Sentiment is showing Dollar weakness against the Pound, Yen and Swiss Franc.
Looking at something completely different, let’s take a view of the South African Rand versus the price of Gold. The correlation is quite clear looking at the charts and News Sentiment is also in agreement showing both Gold and Rand strength in the same degree.
In this same way, the price of Crude Oil impacts the strength of the Canadian Dollar and News Sentiment is neutral on both.
If you are trading either watch out for Crude Oil Inventories Wednesday.
The Canadian dollar will be affected by an interest rate decision but we don’t expect it to change from 0.5%. Thursday we are awaiting Canadian Monthly GDP.
The US Stock Indices are all looking quite strong on the charts and News Sentiment agrees, especially with the NASDAQ.
This is contrary to the European Indices and the Nikkei. Should news on US tax reform be emitted from Washington this week, we may see some big movements, especially if the news is positive.
Just to recap. Acuity Trading reads millions of pieces of News and Social Media looking for Bearish and Bullish Sentiment on Currency Pairs, Indices, Commodities and Equities.
Our Radial and Linear Gauges look at the last hour of data and compare it to the average of the last 30 days of News Sentiment.
Our Market Alerts issue Trade Ideas based on both hourly and daily shifts in news sentiment.
That’s all for now.