The Flash February PMIs will take center stage this week and will indicate the recent effect of coronavirus. What are the possible movements in the Forex market this week? Get more insights for the new trading week with The Forex Secret Weekly Forex Outlook.
The US retail sales increased higher in the month of January. Moreover, other US economic indicators are still solid to indicate a healthy economy.
On the other hand, any softer news of coronavirus may lead the trading activities to be normal
The EURUSD price is struggling to move higher as it is facing bearish pressure at 33 weeks low. However, this week will indicate the Flash Manufacturing PMI and any better than expected result may bring good news for Euro as there is a less economic event in the USA.
The bearish sentiment of the GBPUSD seems like reversed after the speculation of resigning the UK’s law minister.
This week, the bullish momentum is expected to continue as the price broke above the 1.30 level it a bigger pressure. Currently, we are expecting the price to come down a bit to make a correction near the 1.30 area before moving further upside.
The USDJPY price is moving within a long term correction between the range of 110.00 to 108.50. The recent price action suggest that the buyers do not have enough momentum to have a strong breakout with a daily close above the 110.00 level.
Therefore, it is likely that the price will come down this week with the support of risk- appetite sentiment regarding the coronavirus. In that case, the price may touch the 108.50 level again by this week.
August is going through a lot of pressure due to the recent bushfire and the current coronavirus in China. Therefore, this week’s employment data is expected to show a weaker than expected result.
Therefore, the AUDUSD price may fall more down towards 0.6680 and a daily close below that level may make the AUD cheaper than the USD.
As we have mentioned in our previous outlook that there are several institutional buyers in the Gold besides the safe-haven sentiment.
Therefore, the Price of Gold may reach $1600 as the price rebounded from the support level of $1560.