Weekly Overview September 1st. It’s been a while since we posted our weekly analysis. To be honest we were not looking at the markets too too much in August.
But lets see what next week brings us.
We have a quiet start of the week with US and Canada Bank holidays. We have Bank of Canada looking to cut interest rates to 4.25% on Wednesday which may give us opportunity to sell the CAD( If you been following, CAD was good to us end of July, start of August where we took 2 good trades buying CAD).
Now the landscape has shifted and we are looking in the other direction.
US PMIs will drive dollar until Nonfarm Payrolls and unemployment is released on Friday. Expectations of unemployment and jobs are positive so we may see an uptick in dollar.
All eyes on US Nonfarm payrolls and unemployment. These are the two metrics the FED is now obsessed with, and dont forget inflation.
If unemployment comes out good, it will release the pressure of FED cutting rates later this month which will give us opportunities to buy dollar against other currencies.
If unemployment comes lower, we will have opposite scenario which will push dollar even lower.
Covering the Canadian bias, we have only one pair on our watchlist
CAD/JPY shorts
With BoC expected to lower interest rates and Japanese yen getting some steam, this is our pick for the week. However we still need to see price action follow and confirm our bias before executing.
On the dollar side, we will be looking for some dollar strength but will be extremely cautious waiting for unemployment and NFP on Friday.
Stay calm, stay sharp and manage your risk.
Please note that this is only our opinion and you shouldn’t take it as investment advice. Make your analysis and do your research on the markets before execution. Remember that your capital is at risk and it is fully your responsibility to manage your own risk.
Our opinions and biases are for educational purposes only.