A1 Trading Company

February 15, 2024

USD Ahead of PPI

Frank Cabibi

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 from Australia's economic numbers. Employment change jumped by over 63,000 jobs, however, unemployment rate went up.

Both retail and COT are bearish this week as February is notoriously a bearish month for the pair. US had also lower retail sales m/m which bullishly affected this pair. PPI is expected to be higher this month, which would correlate with the higher inflationary number earlier this week.

Gold comes up today to a resistance level at the $2000 mark. This could be a potential short setup on the 1D timeframe if price rejects the highs. After this week's CPI numbers in the US, it is relatively clear why the metal is in a bearish state.

With PPI news tomorrow, gold may see another leg down towards the $1970-80s level. Higher PPI - which is expected- could drive the bearish gold sentiment to end the week.

Unrelated to US, CHFJPY is the EdgeFinder's strongest bearish score. The pair was a bullish reading earlier this month before the score flipped. Japan has a slightly better labor situation than Switzerland as unemployment rate is coming down in Japan.

Japan has Switzerland beat in almost every category except retail sentiment and economy. February is historically the most bearish month for CHFJPY on a 10 year average.

Retail vs COT

On the AUDUSD pair, retail and COT sentiment has declined in the most recent week. Still, there is a net bullish stance from retail and a net bearish stance on COT.

Fundamental Spotlight

US unemployment numbers came in today lower than last month's number. This is a good sign for the labor market, and the trend is still continuing lower.

A1 Edgefinder

All-In-One Fundamental Dashboard!
Simplify your fundamental analysis with our all-in-one fundamental dashboard! 
Discount code: READER

Learn more

Will Big Tech Earnings Save Indices?

This week is full of earnings from big tech as we wait for Google, Microsoft, Meta, and Tesla. This month has been mostly in the red and are coming off a 6-day losing streak in the S&P. With tensions in the Middle East escalated, earnings hopes to save the markets. EdgeFinder Analysis Silver sits at […]

Read More
The Shift is Finally Here

Indices continue to hurt as the US economy points further towards higher inflation this year. The Fed now has to decide whether or not it is worth cutting rates so soon. And if rate cuts are off the table, the sentiment shift might have redirected back to risk-off. EdgeFinder Analysis GU is one of the […]

Read More
Dollar Remains Strong

Indices recover from Friday's lows as the dollar index hovers at break even. The mounting tensions in Israel-Iran escalated market worries, but financial earnings have kicked off to a good start. EdgeFinder Analysis Retail Sales came in higher than expected which is a good sign for the economy. It's also strong for the USD as […]

Read More
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
Home
Edgefinder
Signals
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.
homesmartphonelaptop-phonemenumenu-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram