Trading the week ahead: Labour data is poised to be a major influence on market dynamics [Video]

Giles Coghlan LLB, Lth, MA Financial Source

We start the week with the Eurozone on Tuesday, where inflation data could play a significant role. Given the ongoing French elections, any result that falls below market expectations could put downward pressure on the euro, offering a prime selling opportunity. The political outcomes of these elections could significantly sway the euro's trajectory, making this an event to watch closely.

Shifting focus to the United States, the labour data set for release on Friday is poised to be a major influence on market dynamics. This data is crucial as it may steer the Federal Reserve's forthcoming decisions regarding interest rates. An unexpected rise in unemployment could lead to dollar weakness, presenting a strategic point for currency trades.

Concurrently, Canadian employment data will also be under the spotlight. Signs of a weakening labour market might prompt the Bank of Canada to consider interest rate cuts, potentially leading to opportunities for CAD selling.

Additionally, the anticipation for Thursday's Swiss CPI data offers a unique opportunity for trading the Swiss franc. Recent statements by the Swiss National Bank suggest potential FX market interventions, which could trigger notable franc volatility.

Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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