Overall, the markets woke up this weekend to lackluster movement and lack of direction. While we saw some initial USD strength against the Euro and Swissy, the market zig-zagged back to its starting point by the time markets closed in New York. We saw some strengthening of the Yen against the GBP and USD as the Yen continues trending long. We have a high impact alert on the Economic Calendar for Japan on April 7th so it will be interesting to watch how that affects the current Yen trend.
The Cable traded higher against the Greenback today but as the day closed, those gains were mostly erased as well. While today has been a slow day for trading opportunities, what can we expect going into a week that has 52 high and medium impact alerts on the economic calendar?
Major Economic Events To Watch: April 5-8, 2016
We may see some action with the USD with the Trade Balance and ISM Non-Manufacturing PMI releases. But more importantly, on April 6th when the FOMC minutes from the meeting of March 15-16 is released at 13:00 New York time, then we’ll learn more about the financial health of the Greenback and we highly recommend halting on any Forex trades until the market reacts to the news. We may see some spikes and reverses at this time, but hopefully this will also help give us clearer direction of what direction to take when trading the USD.
Then we advise you to again trade with caution on Thursday April 7th at 6:30am New York time as the ECB releases their Monetary Policy Meeting Accounts and then especially at 8:00am when ECB President Mario Draghi speaks. Super Mario, an affectionate name given to him for his ability to navigate through Italian politics, and has stuck with him throughout his presidency of the European Central Bank, shows his power whenever he speaks as the Forex markets reacts like a yo-yo. Again, we hope to see more direction of the Euro revealed by the end of these releases and statements.
We will continue to see some volatility later in the day as FOMC chairman Janet Yellen speaks at 16:30 New York time. Dr. Yellen also yields power over the financial market so it will be interesting to hear what she has to say and of course the Forex market will be listening as well and reacting with movement as usual.
Finally, on Friday, we won’t see too much added volatility with only one high impact event listed – the Unemployment Rate released by the SECO in Switzerland.
How These Events Impact Forex
By the end of the week, no doubt we will see some confirmed direction and a glimpse at the trend for the month of April, as the potential for trading during the 2016’s second quarter will begin taking shape. In the meanwhile, the ForexSignal Trading Team is watching the market closely for trading opportunities. We have been analyzing the lack-luster market direction and adjusting our trading strategy to take advantage of the more short-term Forex signal opportunities. Learn more about our upgraded Forex trading strategy. Along with our clients all over the world, we hope that you too will benefit from our Forex signal service.
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