Good Afternoon Traders! I hope you are excited about another week of trading! Last week’s price movements were quite disjointed & unusual, with many assets in the FX space trapped within a choppy range.
But, this new week of trading will be the start of 2nd Quarter Earnings Season, which is a 6-week period when publicly-traded companies report their financial results from the previous quarter (Q1). My hope is that we will see a pickup in volatility and a clearly defined market bias in currency markets, as earnings reports help to clarify the true nature of the US economic growth story.
Will this week’s schedule of US Earnings Reports renew enthusiasm in the US Dollar?
This question will be up for debate over the next few weeks of trading. But, at the moment, the greenback looks poised to continue it’s slide lower, causing US-Dollar Denominated currency pairs to trend higher through the Asian & European bourses. However, there is a possibility this weak dollar theme may come to an end in the minutes slightly ahead of the US Wall Street trading hours.
This new week of trading will also open with three distinct US Treasury Bond Auctions in 3-yr, 10-yr, & 30-yr debt, which are usually preceded by a rise in rates (US Tsy yields) to boost the attractiveness of holding US Debt (bonds). If this happens, then we may see a return to US Dollar strength at the start of today’s US Trading Session, followed by a possible USD sell-off during the second half of the week.
This week is also stacked with economic releases of US Inflation data (CPI), US Retail Sales report, an RBNZ policy meeting, UK GDP & Trade Balance, as well as Chinese GDP Data. The Buck (USD) is poised to continue it’s softening phase at this week’s open.
Forex Current Open Levels For New Week (April 12, 2021):
Bitcoin rallied 3% over the weekend, and touched the high of $61,219 on Saturday. It is currently trading off the highs and lower for today at $59,832 at the time of writing. It looks poised to bounce higher as US Dollar weakness becomes the currency play at the week’s open.
As for today’s FX Market Open, on Monday, March 15, 2021, the Sydney(Australia) & New Zealand exchanges will remain thin in liquidity until more Asian centers open for the day. Current Open Levels in today’s forex market, indicate that risk sentiment may remain neutral and tentative for the early part of the session, until a significant catalyst is introduced in later periods.
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Marvin Perry has been an active trader within the Forex market since 2010. He attended the University of Illinois in Urbana/Champaign, and graduated in 2002 with a double major in Cell and Structural Biology and Chemistry. He currently serves as an FX instructor & Quantitative Analyst for the Forex Anatomy Private Trading Community called "The Lab", where he conducts live weekly trading webinars & instruction on Fundamental Analysis & Inter-Market Interpretations of dynamic asset classes and their influence on currencies.