During the Friday session, we start out immediately with the UK GDP numbers. Needless to say, this is very influential on the value of the British pound, as well as the FTSE. With that being the case, recognize that the year-over-year 2Q numbers coming in over the 3.1% level could in fact push the British pound higher. However, we suspect that the 1.68 level will not be broken to the upside so it should be a short-term buying opportunity.
The next major announcement will be the Canadian Unemployment Numbers, with the Unemployment rate expected to come in at 7.1%, and the Net Change in Employment numbers expected to be a positive 20,000. That being the case, the market that will be affected the most will more than likely be the USD/CAD Forex pair. With this, we recognize that the 1.09 level acting as support during the session on Thursday could suggests that perhaps the market expects the Canadian dollar to sell off, and a break above the 1.10 level is an extraordinarily bullish sign.
The United States releases its Net Long-term TIC Flows as well. While it is not a massive economic announcement, if less people are buying treasury notes in the United States, the US dollar could sell off in the short-term. With that, we suspect that this is probably something you need to keep in the back of your mind as far as the value of the US dollar is concerned.
The last economic announcement coming up for the session is the University of Michigan Confidence numbers for the month of August, which is anticipated to come out at 82.5 for the month. A slightly better than expected number can push the United States stock markets higher during the day. Since the S&P 500 broke above the 1950 level, we believe that the market should continue to go higher of a long-term so that being the case we believe that buying pullbacks to show signs of support on the short-term charts might be the way to go as far as the S&P 500 is concerned if we do in fact soften a bit during the session. Either way, we have absolutely no interest in selling the S&P 500.
