Hello traders and welcome to a brand New Month of April, 2024. Just like that, the first quarter of the year is gone. It's a new week, new month, and a new quarter. Our concern as traders is to find good and profitable opportunities to both grow our portfolios and increase profits from the markets. We will be having a peek into the economic calendar to form our bias for the remaining trading days of the week.
Analyzing the economic calendar for the week of April 2nd to April 5th, there are several key events and indicators that traders should pay close attention to. These events have the potential to significantly impact currency pairs, particularly those involving the euro (EUR), US dollar (USD), Australian dollar (AUD), Chinese yuan (CNY), and New Zealand dollar (NZD).
Tuesday, April 2nd:
EUR Consumer Price Index (CPI) (MoM) and (YoY): These indicators provide insights into inflation trends in the Eurozone. Any deviation from forecasts could influence the European Central Bank's (ECB) monetary policy decisions, potentially affecting EUR pairs.
USD Factory Orders and JOLTS Job Openings: These data points reflect the health of the US manufacturing sector and job market, respectively, impacting USD pairs.
Speeches by several Federal Reserve officials: Traders should watch for any hints regarding future monetary policy decisions, as these could affect the USD.
AUD AiG Industry Index: This index measures the performance of the Australian industry sector, potentially impacting AUD pairs.
Wednesday, April 3rd:
CNY Caixin Services PMI: This indicator reflects the performance of the Chinese services sector, which could influence CNY pairs.
EUR Core CPI (YoY): Traders should closely monitor this inflation indicator for its potential impact on EUR pairs.
USD ADP Employment Change: This report provides insights into private sector employment in the US, affecting USD pairs.
Speeches by Federal Reserve officials: Any comments on monetary policy could affect market sentiment and USD pairs.
NZD Building Permits: This data point provides insights into New Zealand's construction sector, impacting NZD pairs.
Thursday, April 4th:
AUD Building Permits (MoM): This indicator reflects the health of the Australian construction sector, potentially impacting AUD pairs.
EUR HCOB Composite and Services PMI: These Purchasing Managers' Index (PMI) reports provide insights into the Eurozone's manufacturing and services sectors, affecting EUR pairs.
ECB Monetary Policy Meeting Accounts: Traders should closely watch for any hints regarding future ECB monetary policy decisions, which could influence EUR pairs.
USD Initial Jobless Claims: This report provides insights into the US labor market, impacting USD pairs.
Based on the events scheduled for the week, traders should closely monitor EUR/USD, USD/JPY, AUD/USD, EUR/GBP, and EUR/JPY pairs. Additionally, keeping an eye on EUR/CNY and NZD/USD pairs could also be beneficial given the significant events related to the euro, Chinese yuan, and New Zealand dollar. It's crucial for traders to remain agile and adaptable to changing market conditions, employing risk management strategies to mitigate potential losses.
Friday, April 5th:
USD Fed's Kugler Speech: Traders should pay attention to any remarks made by Fed official Kugler, as they could provide insights into the US monetary policy outlook, affecting USD pairs.
AUD Exports, Imports, and Trade Balance (MoM): These data points reflect Australia's trade activity and can influence AUD pairs.
EUR Factory Orders (YoY) and (MoM): Eurozone factory orders data provides insights into the health of the manufacturing sector, impacting EUR pairs.
EUR Retail Sales (MoM) and (YoY): These indicators measure consumer spending in the Eurozone, affecting EUR pairs.
CAD Average Hourly Wages (YoY), Net Change in Employment, and Unemployment Rate: Traders should watch Canadian labor market data for its potential impact on CAD pairs.
USD Average Hourly Earnings (MoM) and (YoY), Labor Force Participation Rate, Nonfarm Payrolls, U6 Underemployment Rate, and Unemployment Rate: These US labor market indicators are closely watched by traders for signals on the health of the economy and potential monetary policy implications, influencing USD pairs.
CAD Ivey Purchasing Managers Index (PMI): This indicator reflects the health of Canada's manufacturing sector and can affect CAD pairs.
USD Fed's Logan and Bowman Speeches: Any speeches by Federal Reserve officials could provide insights into US monetary policy, impacting USD pairs.
Based on the events scheduled for Friday, traders should closely monitor USD pairs, particularly USD/CAD and EUR/USD, as well as AUD and CAD pairs due to the Australian and Canadian economic data releases. Additionally, given the significance of US labor market data, USD crosses such as GBP/USD and USD/JPY could also experience increased volatility. As always, traders should exercise caution and employ risk management strategies to navigate market fluctuations effectively.
The Pipsoclock team wishes you a profitable and fun-filled trading week!
