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Weekly Market Outlook – 08/05/16

Weekly Market Outlook – 08/05/16

The jobless numbers printed this past Friday may turn out to be one of the more important reports from this year. Another round of Non-Farm Employment Change data will certainly need to be seen to confirm if a new trend has been started regarding lackluster jobs numbers, but early indications are that layoffs may be on the rise in the States via the ADP, Challenger, and official jobs statistics from the States last week.

The Fed The Federal Reserve The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy When used by traders and investors monetary policy When used by traders and investors monetary policy When used by traders and investors monetary policy usually refers to Central Bank policy concerning ... More usually refers to Central Bank policy concerning ... More usually refers to Central Bank policy concerning ... More ... More is the Central Bank of the United States of America and sets the monetary policy... More which has staunchly repeated its ability about a willingness to raise rates in June may find that it has been placed into a no go area. Growth and consumer sentiment readings, along with manufacturing PMI results have been poor lately and if the jobs numbers are now going to follow suit, the Federal Reserve The Federal Reserve The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy... More is the Central Bank of the United States of America and sets the monetary policy... More will have no choice but to hold off and maintain its current monetary policy.

German Factory Orders will be published on Monday. Industrial Production numbers will come from Germany, France and Italy on Tuesday.  Wednesday, Industrial Production data will come from the U.K. and Crude Oil Inventories will be seen from the States. The BoE will get into the act on Thursday regarding monetary policy in Britain and on Friday the U.S. will release Retail Sales figures and the Preliminary University of Michigan Consumer Sentiment reading will be brought forward.

This upcoming week may look like it is light on data on the surface, but existing trends and market psychology are sure to be tested and things could become volatile. The USD The USD The USD is the official currency of the United States of America. It is the largest reserve currency... More is the official currency of the United States of America. It is the largest reserve currency... More has found itself on the weaker side of trading against the EUR The EUR The EUR is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More and GBP The GBP The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More for a couple of weeks when looked at via weekly charts. The JPY The official currency of Japan is the JPY The official currency of Japan is the JPY which is also knows as the Japanese Yen The official currency of Japan is the JPY which is also knows as the Japanese Yen The official currency of Japan is the JPY which is also knows as the Japanese Yen to investors and t... More to investors and t... More to investors and t... More which is also knows as the Japanese Yen to investors and t... More has been gaining on the Greenback The USD is the official currency of the United States of America. It is the largest reserve currency... More too. While risk averse trading may have been the impetus for a stronger USD on Friday, the question is if traders are going to continue to look at the Greenback as a place they want to park their money if the Fed The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy... More potentially is not going to raise its interest rate in June.

There are certainly questions regarding the EUR and GBP. Greece appears ready to re-enter the news regarding its debt issues and the overall health of the European Union economically is one of stagnation The term stagnation The term stagnation The term stagnation in economics means a period of time in which an economy is achieving little grow... More in economics means a period of time in which an economy is achieving little grow... More in economics means a period of time in which an economy is achieving little grow... More . Sterling The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More has taken hits for a few months because of questions regarding the Brexit vote. Investors however may decide to test the value of these major FX currencies against the USD. The JPY also looks set to continue to get stronger against the USD mid-term.

China Trade Balance numbers have been published early this morning and were better than expected but the Chinese economy is still under the microscope and plenty of concerns exist – shadow banking, a real estate bubble, a lack of foreign demand for goods, and China government policy among them. Japan which had plenty of institutional investors on holiday the past week could see volatility early on Monday and Tuesday as full volumes return to Asian markets.

The crux of trading this week is certain to be existing market sentiment and traders will have to be mindful of short-term trends as support When investors and traders use the term support When investors and traders use the term support When investors and traders use the term support, or support level, they are often speaking about a p... More , or support level, they are often speaking about a p... More , or support level, they are often speaking about a p... More and resistance When investors and traders use the term resistance When investors and traders use the term resistance When investors and traders use the term resistance, or resistance level, they are often speaking abo... More , or resistance level, they are often speaking abo... More , or resistance level, they are often speaking abo... More gets tested. Investors who are eyeing what will take place in June may try to position themselves with trades that are quite different mid-term compared to quick trading opportunities this week.