As the US markets were closed for the Labour Day holiday, the global markets remained relatively calm. However, OCBC FX strategists Frances Cheung and Christopher Wong anticipate a surge in market activity as a wave of data releases approaches.
Unlocking Profit Potential with Data-driven Decisions
“With key data releases such as payrolls scheduled for the end of the week, investors are closely monitoring labour market-related indicators. The Federal Reserve’s focus on supporting the labour market has intensified, making these data points even more crucial for market sentiment,” Cheung and Wong explained.
Market analysts suggest that both positive and negative data releases could result in a strengthening of the US Dollar, while data in line with expectations may lead to a more subdued response. The Dollar Index (DXY) currently stands at 101.67, with a slight bullish momentum observed in daily trading. However, caution is advised as there is still a possibility of a short squeeze in the near future.
Technical analysis highlights resistance levels at 102 (21-day Moving Average) and 102.20 (23.6% Fibonacci retracement of recent price movements), with support levels seen at 100.50. The upcoming week will be dominated by key economic reports, including JOLTs job openings on Wednesday, ADP employment and ISM services employment on Thursday, and the highly anticipated US payrolls report on Friday.
Expert Analysis: How to Turn Market Insights into Profitable Opportunities
By staying informed about upcoming data releases and understanding their implications on currency movements, investors can make well-informed decisions to maximize their profits. Keeping a close eye on key economic indicators and technical analysis can help investors navigate the volatile markets and capitalize on emerging trends.
Remember, knowledge is power in the world of investments. Stay informed, stay ahead, and turn market insights into profitable opportunities.