3 markets to watch

Summary:

  • Gold awaits the Fed, US labour market data
  • Inflation data could be crucial for the EURUSD
  • US500 will react to the PMI and ISM reports

Gold

Gold prices have been contained lately by the strong US dollar and were unable to benefit from collapsing bond yields worthwhile. So it seems natural that the US labour market data (ADP report on Wednesday and the NFP report on Friday) and especially a fresh message from the Fed (Wednesday evening) will be of huge importance for the metal.

Gold prices are coming back toward the recently broken demand/supply zone. Source: xStation5

EURUSD

The EURUSD broke to the 2019 lows last week under pressure from weak economic data and in this context the flash inflation releases from the key eurozone countries for April along with the preliminary GDP data for the first quarter (all on Tuesday) may be a “make or break” for the euro. Another setback might be too much for investors and spark a speculation about more easing from the ECB.

The EURUSD is hovering around the lower bound of the bearish channel. Source: xStation5

US500

US indices like the US500 rallied in April partly on the back of a rebound in activity in China. While China is off to a long Labour Holiday, the Caixin PMI will be released on Thursday. In the US the ISM indices will be published on Wednesday and Friday. Traders can be worried if they confirm a slowdown in the US economy that has been painted by flash PMI indices.

US500 has failed to reach its new all-time high so far. The nearest support zone could be found nearby 2810 points. Source: xStation5

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