What events may affect market sentiment on July 13? Overview of fundamental events for beginners
July 13, 2023 4:20 am
Overview of macroeconomic reports
Several macroeconomic events are lined up for Thursday, but almost all of them are not that important. The EU will release a report on industrial production, which hardly provokes a market reaction even of medium strength. The US will release data on the producer price index and claims for unemployment benefits. The producer price index is an inflation companion report, so a stronger decline may provoke the dollar’s drop. However, not as strong as Wednesday. Unemployment claims can provoke a market reaction only in case of a strong deviation from the forecast value.
The UK will also release several reports. In particular, several variations of GDP in monthly terms, which usually interest traders much less than quarterly data. There will also be a report on industrial production, which is also not considered important. At this time, the euro and the pound can start a corrective move at any moment, but at the same time, the uptrend persists.
Overview of fundamental events
Among the fundamental events, we can only take note of Federal Reserve official Christopher Waller’s speech. However, we list important speeches by officials from the Fed and European Central Bank every day, but the market hardly reacts to them. And the representatives of monetary committees themselves rarely say anything important. They just create a background that helps traders decide which way to trade in the medium term. But now the market is clearly set to sell the dollar, and after the inflation report, it’s extremely difficult to expect hawkish comments.
Bottom line
On Thursday, there will be a lot of secondary data, and we can only expect a market reaction in case of a strong deviation in any of the reports from the actual value from the forecasted one. There will not be a single important fundamental event. Both pairs would not be harmed by a correction after strong growth in recent days, but this does not mean that the uptrend will be broken.
Main rules of the trading system:
The strength of the signal is calculated by the time it took to form the signal (bounce/drop or overcoming the level). The less time it took, the stronger the signal.
If two or more trades were opened near a certain level due to false signals, all subsequent signals from this level should be ignored.
In a flat market, any currency pair can generate a lot of false signals or not generate them at all. But in any case, as soon as the first signs of a flat market are detected, it is better to stop trading.
Trades are opened in the time interval between the beginning of the European session and the middle of the American one when all trades must be closed manually.
On the 30-minute timeframe, you can trade based on MACD signals only on the condition of good volatility and provided that a trend is confirmed by the trend line or a trend channel.
If two levels are located too close to each other (from 5 to 15 points), they should be considered as an area of support or resistance.
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
Overview of macroeconomic reports
Several macroeconomic events are lined up for Thursday, but almost all of them are not that important. The EU will release a report on industrial production, which hardly provokes a market reaction even of medium strength. The US will release data on the producer price index and claims for unemployment benefits. The producer price index is an inflation companion report, so a stronger decline may provoke the dollar’s drop. However, not as strong as Wednesday. Unemployment claims can provoke a market reaction only in case of a strong deviation from the forecast value.
The UK will also release several reports. In particular, several variations of GDP in monthly terms, which usually interest traders much less than quarterly data. There will also be a report on industrial production, which is also not considered important. At this time, the euro and the pound can start a corrective move at any moment, but at the same time, the uptrend persists.
Overview of fundamental events
Among the fundamental events, we can only take note of Federal Reserve official Christopher Waller’s speech. However, we list important speeches by officials from the Fed and European Central Bank every day, but the market hardly reacts to them. And the representatives of monetary committees themselves rarely say anything important. They just create a background that helps traders decide which way to trade in the medium term. But now the market is clearly set to sell the dollar, and after the inflation report, it’s extremely difficult to expect hawkish comments.
Bottom line
On Thursday, there will be a lot of secondary data, and we can only expect a market reaction in case of a strong deviation in any of the reports from the actual value from the forecasted one. There will not be a single important fundamental event. Both pairs would not be harmed by a correction after strong growth in recent days, but this does not mean that the uptrend will be broken.
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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