The financial markets were packed with action on Tuesday, as the asset prices were trying to establish trends among mixed results from economic indicators. The day began with Manufacturing Production and Goods Trade Balance reports from the UK. The results were a lot worse than expected, which caused traders to rush away from British Pound and find safety in USD and Gold.
In the afternoon, United States of America published Prelim Nonfarm Productivity and Prelim Unit Labor Costs data for the previous quarters. They came out at satisfying rates – especially the Unit Labor Costs which exceeded expectations with 2.0%.
Wednesday will be a slower day, as there aren’t any major reports due morning or noon. Various economic indicators will be released by the US. The analysts are forecasting a slight increase in JOLTS Job Openings data. Although the expected improvement is small in numbers, employment reports always carry the chance to spark volatility in prices, and it can help USD to gain strength across the markets.
Shortly afterwards, Crude Oil Inventories will be published. Crude Oil prices recently went below the crucial support level at $40.00/barrel only to bounce back from $39.45. The global supply glut was the main reason for the downtrend. Currently, the black gold’s price is trading in a bearish trend and it is close to the support at $42.06. If we see a drop in the inventories as analysts forecast, traders might take this as a signal on increased demand and the current momentum can change.
The last important event is the Budget Balance announcement by US Federal Reserve Bank. Last month, Federal Budget Balance recorded a surplus of $6.3 billion. However, economists are anticipating Federal Budget Balance to have $129.9 billion deficit this month. If the actual result meets the forecast, USD might give back the potential gains from JOLTS Job Openings.
Important Note: Any information disclosed in this daily market analysis is gathered for informative purposes only, and should not be considered as an advice, recommendation or suggestion by the publisher.
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