Main trading ideas on financial markets for 08.01.2019

Hello dear traders! My name is Alina, I’m a financial advisor at AMarkets company. Today I would like to share trading ideas for the current week.

Last week, there were day off on Tuesday and New Year’s celebrations. However, important economic events provoked a rise of volatility on the financial markets and forced investors to return to trading.

Obviously, Apple company’s statement on Wednesday eclipsed Friday’s Non Farm Payrolls report. The Company on the 3d of January reduced its own revenue forecast for its first fiscal quarter relying on slowing Chinese economy and falling sales in Asia. Apple reported that its 1Q revenue is now expected to fall to 5% from the previous year.

There is no secret that investors expected reducing in Apple sales, however, no one could predicted how it would affect on the spot market. Australian and New Zealand dollars and Japanese yen suffered stronger than other currencies and showed abnormal volatility. New lows were reached for the last few months.

On Friday, the US dollar fell against most of the majors ignoring positive market labor data. The number of new jobs created in December was 312 thousand against 177 thousand forecast. Early average hourly earnings grew to 3.2% while forecast was 3%, monthly showed rising to 0.4%. Unemployment Rate was worse than expected (3.9% against 3.7%). Also there were economic data publication in Canada. Net Change in Employment was better than expected (9.3 thousand against 5 thousand), Unemployment rate remained the same 5.6% in December against 5.7% forecast. These news helped canadian dollar to rise against US dollar third session in a row from 1.3640 to 1.3380.

The key news for this week is interest rate decisions in Canada, unemployment rate in Switzerland and FED’s Powell Speech in USA.
Today, we don’t expect the hike of volatility in the major currency pairs. However, there might be some fluctuations in EURUSD because of Consumer credit Change and JOLTS (US Bureau of Labor Statistics) Job Opening in USA and Economic sentiment indicator in Eurozone.

On Wednesday, January 9, Bank of Canada monetary policy report and Interest Rate Decision in Canada will be the main newsmaker with the US dollar being in the spotlight. FOMC minutes in the USA is also scheduled to be released on Wednesday and certainly will affect on the USDCAD pair, which is going to beat the low of this year – 1.3350. Also, we expect Trade Balance, Export and Import data which will be published in Germany at 7:00 GMT.

On Thursday, January 10, ECB Monetary Policy Meeting Accounts Eurozone, which may help Euro to rise after long-term consolidation zone against the US dollar 1.1260-1.1460. However, the key event of the day will be FED’s Powell speech.

As for Friday, the most important publications to be released are Gross domestic product in the UK at 9:30 GMT and Consumer price index in the USA at 13:30 (Half past one PM) GMT. We expect the US dollar to weaken against the Canadian dollar and Swiss franc currencies by the end of the week. Also, we expect the EURUSD and the GBPUSD pairs to rise.

To sum up, here are our targets for:
the EUR/USD – buy to 1,1590
the USD/CAD – sell to 1,32
the GBP/USD – buy to 1,2850