Weekly Outlook | Shaky markets after disappointing NFP data

Important events this week:

Last week was mostly impacted by the news that Donald Trump won’t support the Ukraine further. On another note, the talks about increasing tariffs on various countries currently causes the economy to remain cautious. The transition period might be followed with more downside momentum. This also causes equity markets to remain shaky and potentially further negative momentum might be seen.

This weeks’ data will be interesting as we examine below. European equities continue to trade somewhat positive, whereas the negative sentiment from the US has not taken a toll to Chinese markets for now. Traders continue to focus the Asian region, where potentially fresh upside can

– US – consumer prices index– Theimportant release of the producer price index this week might give market participants more insights into the US economy. With the Federal Reserve central bank not being keep to cut rates much over the course of this year, this information might give valuable insights for that matter.

It is expected that the monthly data will fall to 0.3%, which could also cause the Dollar to weaken further. A look at the daily chart of the EURUSD currency pair reveals that the market might rise further.

The next resistance zone at 1.0950 is in close proximity and might be tested anytime soon. The lower band at 1.0750 currently offers a potential support zone, based on past price action. The index will be published on Wednesday, the 12th of March at 13:30 CET.

– CA interest rate decision– It isexpected thattheBank of Canada will cut interest rates this month. Currently, the CAD has been under pressure against most other currencies. The USDCAD currency shows, that the strong uptrend might continue.

Since the price has broken above the 1.4300 resistance zone recently, more upside momentum might occur. A potentially safer entry to buy this might be above the recent high points of 1.4600. The upside potential might continue from there. A cut in rates might help the currency pair further as the CAD might lose steam. The decision will happen on Wednesday, 12th March at 14:45 CET.

– UK gross domestic product– Despite the GDP data not being very important, due to their lagging nature, we like to take a look at the GBPJPY currency pair. Last month, the data came out with a positive surprise of 0.4%, causing the market to rise somewhat. Another positive result above the 0.2% increase might help the Pound to gear up steam even further.

A break of the rising 50- moving average trendline, which currently sits at 191.85 might indicate further upside momentum. Also the falling trendline had been broken, which might itself confirm further upside. If on the other hand the market will fall back below the 190.00 support zone, more downside momentum might be seen. The data will be released on Thursday, 13th March at 13:30 CET.