On the Friday session, the market will be focusing on Europe in general. The German Retail Sales month over month comes out early in the day, anticipated to be 0.1%. With that, we anticipate that the EUR/USD pair, as well as the DAX should be influenced by what happens with this announcement. We don’t necessarily think of this as an earth shattering moment, but it’s yet another thing to think about when trading the Euro and German stocks in general.
The CPI numbers come out of the European Union a little later in the day, with the headline number expected to be 0.3%. That of course can have an effect on the DAX as well as several of the European indices. We believe that most of them look like the ready to pull back anyway, so with a little bit of a disappointment we could see that exacerbated a bit. At the end of the day though, we think that will represent value. Possibly moving the EUR/USD pair as well, a miss will send the value of the Euro down. We believe ultimately that that market is heading to the 1.30 level anyway, so we are looking to sell any rallies that we see on short-term charts.
Canadian GDP comes out, and that should affect the value the Canadian dollar overall. However, there is a significant amount of resistance above at the 1.10 level, so we suspect that the USD/CAD pair will probably struggle to break out to the upside, or even to the downside with any significance. This is especially true considering that it’s a Friday, and the oil markets are not necessarily helping the value of the Loonie.
During the US session, we get the Core PCE Price Index numbers, which can have an effect on the marketplace. The S&P 500 has a very firm look to it, so quite frankly this could be what’s needed in order to break out above the 2005 level. A move above there, we go much higher. Ultimately, there is the Michigan Consumer Sentiment number that comes out as well, and that could push the S&P 500 up quite a bit higher as well. Nonetheless, we have no interest in selling the S&P 500 and as a result we are looking for supportive candles on pullbacks in order to go long, or the aforementioned break out.
On the Friday session, the market will be focusing on Europe in general. The German Retail Sales month over month comes out early in the day, anticipated to be 0.1%. With that, we anticipate that the EUR/USD pair, as well as the DAX should be influenced by what happens with this announcement. We don’t necessarily think of this as an earth shattering moment, but it’s yet another thing to think about when trading the Euro and German stocks in general.
The CPI numbers come out of the European Union a little later in the day, with the headline number expected to be 0.3%. That of course can have an effect on the DAX as well as several of the European indices. We believe that most of them look like the ready to pull back anyway, so with a little bit of a disappointment we could see that exacerbated a bit. At the end of the day though, we think that will represent value. Possibly moving the EUR/USD pair as well, a miss will send the value of the Euro down. We believe ultimately that that market is heading to the 1.30 level anyway, so we are looking to sell any rallies that we see on short-term charts.
Canadian GDP comes out, and that should affect the value the Canadian dollar overall. However, there is a significant amount of resistance above at the 1.10 level, so we suspect that the USD/CAD pair will probably struggle to break out to the upside, or even to the downside with any significance. This is especially true considering that it’s a Friday, and the oil markets are not necessarily helping the value of the Loonie.
During the US session, we get the Core PCE Price Index numbers, which can have an effect on the marketplace. The S&P 500 has a very firm look to it, so quite frankly this could be what’s needed in order to break out above the 2005 level. A move above there, we go much higher. Ultimately, there is the Michigan Consumer Sentiment number that comes out as well, and that could push the S&P 500 up quite a bit higher as well. Nonetheless, we have no interest in selling the S&P 500 and as a result we are looking for supportive candles on pullbacks in order to go long, or the aforementioned break out.