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What events may affect market sentiment on August 23? Overview of fundamental events for beginners
August 23, 2023 5:25 amVideo
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Overview of macroeconomic reports
Preliminary readings of EU, German, UK, and US PMIs for August will be released on Wednesday. Given that the euro still has a tendency to fall and the pound is in a sideways channel, these PMIs are unlikely to significantly alter the market mood. They are not crucial, and their values often almost completely coincide with forecasts, which in itself does not imply a strong market reaction. However, there will be as many as eight PMIs on Wednesday, so several of them might deviate from the forecasts and trigger a decent movement. But, to reiterate, everything will depend on the actual values of the gauges.
Overview of fundamental events
There is absolutely nothing to highlight among Wednesday’s fundamental events. On Tuesday, three officials of the Federal Reserve’s monetary committee spoke, which did not particularly influence the movement of the pairs. The market is confident that the Fed will pause its rate hiking cycle in September and sees no reason to change its opinion for now. Therefore, the fundamental backdrop is currently weak and does not influence the movement of pairs. On Tuesday, Thomas Barkin suggested one or two more rate hikes, as inflation is still far from the target level, but everything will now depend on the US inflation report for August.
Bottom line
On Wednesday, PMIs will be published in all countries. Some of them might provoke a market reaction, but everything will depend on their values and alignment with forecasts. In any case, there’s nothing else to focus on, so we will focus on these reports.
Main rules of the trading system:
Comments on charts
Support and resistance levels are levels that serve as targets when opening long or short positions. Take Profit orders can be placed around them.
Red lines are channels or trend lines that display the current trend and show which direction is preferable for trading now.
The MACD (14,22,3) indicator, both histogram and signal line, is an auxiliary indicator that can also be used as a source of signals.
Important speeches and reports (always found in the news calendar) can significantly influence the movement of a currency pair. Therefore, during their release, it is recommended to trade with utmost caution or to exit the market to avoid a sharp price reversal against the previous movement.
Beginners trading in the forex market should remember that not every trade can be profitable. Developing a clear strategy and money management is the key to success in trading over a long period of time.
The material has been provided by InstaForex Company – www.instaforex.com
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