The week ahead has many a fundamental news release to look forward to, events which are sure to have traders licking their lips at the implied volatility and the numerous trading opportunities they create. Let us take a look at our top 3 picks:
- Early Tuesday sees President Trump take the podium as he addresses a rally at the Kentucky Exposition Center where he will address a large array of topics. Markets will be on the lookout for comments regarding fiscal policy reforms and relaxing of certain regulations. Equities have been making higher highs on the early rhetoric by trump to cut taxes, increase spending and relax regulations and should he follow though in this speech, with actual actions to be taken, equity markets and the USD will cheer as we see them both strengthen. While, a speech in which he downplays any fiscal stimulus or the relaxation of regulations, would likely result in equities making an abrupt U-turn as sentiment sours, turning south with the USD in tow.
- Wednesday sees the release of the US Crude Oil inventories which caused quit the stir at their last release. Last week saw the figures release at about 8 times the expected inventory build which was pounced on by crude oil sellers who managed to break to the downside, through the support of a three-month range, on speculation of oversupply and a decreased demand of the commodity. With Crude still trading below the low of the 3-month range, Wednesday data will either fuel further selling if the builds outweigh expectations or see bulls resurface to drive the price back within the previous range on the back of lower builds.
- Thursday sees Fed Chair Yellen take the podium as she once again addresses markets. Her last speech was at the FOMC conference in which she tried to maintain a balanced tone but none the less resulted in a weakening of the USD as markets deciphered the overall conference as dovish. This week’s speech will allow Yellen to hint further at the outlook and expected actions of the FOMC and traders will look for clues in a bid to better understand the FOMC`s positon. A more hawkish speech will see the USD strengthen off its current lows while a more dovish tone will only add fuel for further selling as markets begin the next level of USD unwinding.
The above are just the tip of the iceberg of the daily events which occur in markets, for daily technical and fundamental analysis please visit: https://www.opteck.biz/fundamental-analysis/