What we are looking to trade this week
On paper is does not seem to be the most interesting week Macro FX trading-wise. However, in the very volatile and unpredictable environment we are currently operating in we are sure that opportunities will arise this week.
If we look at our calendar there are some interesting data releases that could surprise. Perhaps one that could surprise is the US new building permits on Wednesday. It is not a classic big mover of FX but building permits are one of the first indicators of upcoming changes in the economy and we do believe both the FED and the market are paying closer attention to the number than usual. A big diversion from consensus could stir up the FX markets.
On top of the planned releases there are plenty of possible jokers during the week. The drama in the UK seems to continue indefinitely, China is keeping up its “poker-face” against the US and several things seems to go sideways in the big country, Russia seems to intensify attacks on Ukraine with their newly assigned general in place so it seems much could happen the coming days.
With the above topics in mind FX crosses worth being extra focused on this week are: EURUSD, XAUEUR, GBPUSD and USDCNH.
