Forex Market Outlook on Labour Day Holiday


The global financial markets will see limited action on Monday, as North America pauses for the annual Labour Day holiday. OctaFX present their Forex Market Outlook on Labour Day Holiday.

4 September, OctaFX - The European Sentix investor confidence survey headlines the economic calendar at the start of the week. The monthly report, which is used to gauge the sentiment of institutional investors, is forecast to slip to 27.4 in September from 27.7 the previous month.

Forex Market Outlook on Labour Day Holiday

97/100
Multibank Review
Visit Site
96/100
Capital.com Review
Visit Site
96/100
Markets.com Review
Visit Site

In terms of official data, the European Union’s statistical agency will report on producer inflation at 09:00 GMT. The producer price index (PPI) will climb 0.1% in July after dropping 0.1% the previous month, according to the markets. Specifically, this translates to a year-over-year gain of 2.2%, according to estimates.

IHS Markit and the Chartered Institute of Purchasing and Supply (CIPS) will also report on UK construction activity. Moreover, markets expect the construction purchasing managers’ index (PMPI) to edge up to 52.0 in August from 51.9 the previous month.

The economic calendar features several high-profile events this week. This includes a pair of monetary policy decisions by the Bank of Canada (BOC) and European Central Bank (ECB).

In currencies, the US dollar moved lower at the start of the week. The dollar index (DXY) fell 0.2% to 92.66 at the start of Asian trading. The greenback rebounded sharply last week on the heels of better than expected data releases.

On Friday, the US Labor Department said nonfarm payrolls rose by 156,000 in August, below forecasts calling for 180,000.

EURUSD Labour Day outlook

Forex Market Outlook on Labour Day Holiday

The euro opened higher on Monday, as the market stabilized following a volatile week. The EUR/USD exchange rate rose 0.2% to 1.1886, where it was awaiting key fundamental cues in the form of monetary policy and economic data.  The pair faces immediate support at 1.1820. Below that level, 1.1740 is the next immediate play. On the opposite side of the spectrum, resistance is located at 1.1920, followed by 1.1960. Only then can the pair extend its rally back toward the August high of 1.2064.

4 September GBPUSD trading forecast

Forex Market Outlook on Labour Day Holiday

The British pound broke higher on Friday after the nonfarm payrolls miss, with the GBP/USD moving past the 50-day simple moving average (SMA). Also, the GBP/USD pair extended gains on Monday, climbing 0.1% to 1.2963. The psychological 1.30 level continues to offer immediate resistance. Above that level, the pair is eyeing 1.3040. On the downside, immediate support is likely found at 1.2880, followed by 1.2850.

How is gold trading on Labour Day Holiday?

Forex Market Outlook on Labour Day Holiday

The gold rush continued Monday, with bullion surging to new yearly highs. Also, spot prices opened 0.8% higher, bullion reaching $1,336.00 a troy ounce on the Comex division of the New York Mercantile Exchange. Moreover, the rush to gold likely reflects renewed risk aversion in the financial markets after North Korea tested its most powerful nuclear bomb yet.

Disclaimer

This article about Forex Market Outlook on Labour Day Holiday should not be taken as advice nor substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, acts of nature and other factors, all of which may substantially affect the price or availability of one or more foreign currencies.

Also, speculative trading is a challenging prospect, even to those with market experience and an understanding of the risks involved.

Leave a Reply

Your email address will not be published.