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Trading Week Ahead: 10th – 14th February 2020

jeffriess
February 9, 2020
by Joseph Jeffriess, Market Analyst

Article Recap

Key Events This Week


Tuesday
GBP Prelim GDP

Wednesday
USD Fed Chair Powell Testifies
NZD Official Cash Rate
RBNZ Monetary Policy Statement
RBNZ Rate Statement
RBNZ Press Conference

Thursday
USD Fed Chair Powell Testifies
NZD RBNZ Gov Orr Speaks
AUD RBA Gov Lowe Speaks

Friday
USD CPI
Core CPI
EUR German Prelim GDP

Saturday
USD Core Retail Sales
Retail sales

Nasdaq Reaches All-New Highs, as Oil Continues to Tumble

The Nasdaq hit new highs as key shares jumped during the week. Looking at the NDX100 (Nasdaq) we would like to see 9175 hold for any tests lower showing that the current breakout maintains buyer momentum. Oil has been deeply affected by corona on the demand front. Price breached $50 during last week moving below its $50.70 support level. Late last week reports emerged of supply cut talk to help stabilise price. We’ll be looking for further updates around this during this week. Price rallied into the end of last week and if we see more coordination around cuts could we see further gains?

Coronavirus: The Economic Impact

Coronavirus remains a key influence and has continued to develop, sadly the death toll in China continues to rise with 636 confirmed deaths and 31,161 infections. Coronavirus has now overtaken SARs in official deaths. Experts report that the virus may not have peaked yet and new cases are continuing to rise outside of China. Singapore has reported an increase to 30 cases. Questions have started to be asked about the economic impact of the virus and now China has downgraded its 1st quarter figures.

Fed Chair Powell testifies this week. There are two parts to this, a statement and a public Q&A. Traders will be focusing on the Q&A as it can lead to unscripted moments which can cause volatility due to hints/directions around future monetary policy.

THIS WEEK’S CHART

The GBPUSD, looking at the weekly price has started to confirm an LH after a trend break, last week we saw some solid selling. This week we’re watching with interest if support level 1.2950 can hold with the demand area. If we see price break through these areas we could be seeing a new short to medium downtrend developing. It’s worth watching to see whether the GBPUSD will fluctuate due to the release of the GBP Prelim GDP report on Tuesday, and ongoing trade talks between the UK and EU.

GBPUSD.Weekly

All times are AEST.