Weekly Market Outlook US Inflation & Earnings in focus

It’s a relatively quiet week ahead on the economic calendar. Nonetheless, it could still be quite volatile as US inflation figures will be released on Wednesday. After the stellar jobs report on Friday a turn in US economic data could help develop a strong trend in the dollar and stock indices.

German ZEW numbers on Tuesday and UK GDP numbers on Thursday could also create some volatility in the euro and British pound and will be releases to focus on.

There are also some big corporate earnings announcements that will keep stock market indices moving. This includes reports from NIO, Lyft, Baidu and Disney.

You can learn more about some of the global themes affecting the markets in this selection of new education articles.

• 5 Best Investments for the Rest of 2021
• Best oil ETFs to Watch over Summer
• Why Invest in Russia?

Weekly Forex Calendar

Source: Forex Calendar from the MetaTrader 5 trading platform provided by Admirals.

Did you know that three times a week, three professional traders talk through the markets live and show you how to identify potential trading opportunities? Reserve your complimentary spot in the Admirals Spotlight webinar now by clicking the banner below!

Trader’s Radar – Wednesday’s US CPI Figures

At 1.30 pm BST on Wednesday 11 August, the Bureau of Labor Statistics will release the latest US Consumer Price Inflation (CPI) report. Since the Fed announced plans to start tapering there has been an increased interest in US economic releases.

Last Friday, the US Non-Farm Payroll figures beat market expectations causing the US dollar to surge higher. Federal Reserve members have been increasingly bullish about bringing an end to stimulus.

If inflation figures continue to rise, it’s likely to cause the Fed to act much sooner than anticipated. This could add even more fuel to the rise in the US dollar so it’s a trend to keep an eye on.

Source: Admirals MetaTrader 5, USDX, Monthly – Data range: from Jul 1, 2005, to Aug 6, 2021. Performed on Aug 6, 2021, at 7:00 am GMT. Please note: Past performance is not a reliable indicator of future results.

The long-term, monthly price chart of the US dollar index shown above, highlights the recent technical support that has helped to lift the US dollar. The combination of the horizontal support line and ascending trend line has helped buyers to build positions around these levels.

If the price can break through the recent high of around 93.70, then it could confirm a higher high and higher low cycle formation which could drive the dollar even higher. However, the price has not broken through this price level yet which will cause some traders to remain cautious.

If you’re feeling inspired and ready to trade live in the market, you can open a live trading account by clicking on the banner below and accessing an impressive range of trading features to support you in your journey.

Corporate Trading Updates and Stock Indices

Global stock market indices have been a buoyant mood with European indices such as the CAC 40 and US indices such as the S&P 500 recording all-time highs last week. While the US dollar has remained weak, US stock indices have surged higher. This may change if the dollar starts to turn and trade higher.

Source: Admiral Markets MetaTrader 5, SP500, Daily – Data range: from Nov 10, 2020, to Aug 6, 2021, performed on Aug 6, 2021, at 6:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.

Past five-year performance of the S&P 500:

• 2020 = +16.17%
• 2019 = +29.09%
• 2018 = -5.96%
• 2017 = +19.08%
• 2016 = +8.80

The chart of the S&P 500 shows that buyers didn’t drive the market higher on the much better than expected US employment report. In fact, good economic news brings forward the potential for an interest rate hike which stock markets do not favour in the short term.

However, trends are still up and so far the dip buying around moving averages and technical support as helped to keep the trend up.

Did you know that you can use the Trading Central Technical Ideas Lookup indicator to find actionable trading ideas on this index and thousands of other instruments across Forex, stocks, indices, commodities and more?

You can get this indicator completely FREE by upgrading your MetaTrader 5 trading platform provided by Admirals to the exclusive Supreme Edition!

INFORMATION ABOUT ANALYTICAL MATERIALS:

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:

1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
4. The Analysis is prepared by an independent analyst, Jitan Solanki (analyst), (hereinafter “Author”) based on their personal estimations.
5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.