The RBA statement, BOC statement & US PMI are to report in the first three trading days this week. Australia and Canada are expected to keep rates the same, while US PMI is looking to see an increase this month.
GU is now a strong bullish score on the EdgeFinder at +10. Risk-off assets such as this one have been finding some months of upside. As we roll into a new month, however, there seems to be a bit of a lull in the markets.
There are some worries as to whether PMI numbers and NFP come in higher as expected. According to the Fed, it still is pretty clear that their stance hasn't changed around monetary policy and inflation. So, the most likely scenario seems to be the currently high rates for longer.
After busting through all time highs, the metal proceeded to pull all the way back on a nearly 6% drop from the highs and 2% from the open. When you see a run like this, it becomes increasingly hard to ride the wave of momentum for the past month.
It may be time for gold to take a breather before we get another buying opportunity. Looking forward into the week, stronger PMI and NFP this Friday would not be good for the metal either as it tends to find strength in economic weakness.
AUDCAD is now sitting at a weaker bullish reading today after being a strong bullish setup in November. Both central banks are expected to maintain current rates and likely have similar policy statements about future hikes.
It appears that most countries cannot afford another rate hike due to rising borrowing costs and diminishing margins over time. This month is historically a positive one to cap off the year, but volatility may be limited after the rate decisions.
CHF is retail's most shorted asset while the indices and gold are mixed. Bitcoin is being heavily shorted after running up into the $40k level.
Smart Money Spotlight
Pound was the most longed currency from the smart money side. US30 (Dow Jones) and gold were the runner ups. USD, JPY and oil were the most shorted assets in terms of money flow from last week.
The labor study on the indices is a strong bearish signal due to falling NFP, higher jobless claims and higher UE rates. In general, these events are not good for the stock market. However, lower jobs numbers have been interpreted as bullish SPX for the hopes of ending monetary tightening from the Fed. So if NFP beats, the score will change positive, but it may be a mixed reception from investors.
AI- Generated Trading Setups
AI-generated bullish/bearish bias setups on forex currencies, gold, & indices.
Pound pairs are now a stronger bullish reading on the EdgeFinder than any other currency this week. With PMI data coming in the UK on Thursday, here is what to expect for the GBP pairs in the coming days. EdgeFinder Analysis GBPAUD is the strongest of the GBP pairs today at +7. The score increased […]
Tomorrow's PPI number will be another impactful factor on investor sentiment around dollar-based assets. We have already talked about CPI's recent influence on the markets, but here is what can happen tomorrow on a beat or miss scenario. EdgeFinder Analysis AU is now at -6, one point higher than yesterday's -7 due to economic numbers […]
Gold's price broke under a three-month long supportive trend line. Although the break below has the metal down almost half a percent on the day already, there is still a bullish case for the metal for a few reasons. EdgeFinder Analysis UJ is bullish at +6 going into the week. The dollar in general is […]
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.