April 7, 2021 1:42 AM PDT
Tensions between the US and China are heating up, with many indications
suggesting that the Trump-inspired US-China trade war will continue with
under the Biden administration – and perhaps intensify. Ahead of
anything else intensifying, data releases are due to show that Chinas
manufacturing sector is still growing, but barely. The March China NBS
manufacturing PMI is expected to cross the wires with a reading of 51.2,
according to a Bloomberg News survey, up from the 50.6 reading in
February.To get more news about [url=https://www.wikifx.com/us_en/]WikiFX[/url], you can visit wikifx.com official website.
03/31 WEDNESDAY |06:00 GMT | GBP GROWTH RATE (4Q20)
Even as the UK remains among the best in the world in terms of
vaccination rates, the outbreak of the B.1.1.7 mutation of COVID-19
still managed to slow things down at the end of last year. According to a
Bloomberg News survey, the final UK growth rate update for 4Q20 is due
to show a slight improvement, from -8.7% to -7.8% (y/y). Nevertheless,
any issues seen in the final 4Q20 UK GDP data may be overlooked as
markets continue to look forward to the UK regaining its pre-COVID
economic potential.
GBP/USD: Retail trader data shows 51.55% of traders are net-long with
the ratio of traders long to short at 1.06 to 1. The number of traders
net-long is 1.03% lower than yesterday and 21.51% lower from last week,
while the number of traders net-short is 14.46% higher than yesterday
and 13.02% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact
traders are net-long suggests GBP/USD prices may continue to fall.
Yet traders are less net-long than yesterday and compared with last
week. Recent changes in sentiment warn that the current GBP/USD price
trend may soon reverse higher despite the fact traders remain
net-long.US President Joe Biden has already seen his $1.9 trillion
stimulus program pass into law, but hes not done yet. Midweek, the
American president will not only deliver remarks regarding the
deployment of the first stimulus package and an update on COVID-19
vaccination efforts, but will also outline the framework for a sweeping
infrastructure spending program, encompassing climate change and public
education. While it remains to be seen whether or not the Biden
administration prioritizes changes to the Senate filibuster is another
story, but the markets may soon have a new carrot to chase.
The US economy is gaining steam, at least in the manufacturing sector,
which accounts for around 12% of all US jobs. Both readings of the
sector due out from Markit IHS and the Institute of Supply Managers
(ISM) suggest that March was a stronger month than February. The Markit
Manufacturing PMI survey is due in at 59 from 58.6, while the ISM
Manufacturing PMI is expected at 61.3 from 60.8. Cumulatively, running
at a pace near 60 suggests that US economic data momentum is improving
as vaccination efforts accelerate, priming the US economy for a strong
2Q21.
Following the surprisingly strong reading for February, the US labor
market is looking to build on that momentum with a reading nearly twice
as strong. Consensus surveys from Bloomberg News see the world‘s largest
economy having added +675K jobs in March following the gain of +379K
jobs in February. The unemployment rate (U3) is set to drop from 6.2% to
6%.At the end of the week, the US jobs report may serve as a key
stepping stone to reinvigorating the US-centric ’reflation trade: higher
yields, higher equities, and a higher US Dollar.
EUR/USD: Retail trader data shows 53.71% of traders are net-long with
the ratio of traders long to short at 1.16 to 1. The number of traders
net-long is 5.91% higher than yesterday and 19.69% higher from last
week, while the number of traders net-short is 20.68% higher than
yesterday and 9.13% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact
traders are net-long suggests EUR/USD prices may continue to fall.
Positioning is less net-long than yesterday but more net-long from
last week. The combination of current sentiment and recent changes gives
us a further mixed EUR/USD trading bias.
Tensions between the US and China are heating up, with many indications
suggesting that the Trump-inspired US-China trade war will continue with
under the Biden administration – and perhaps intensify. Ahead of
anything else intensifying, data releases are due to show that Chinas
manufacturing sector is still growing, but barely. The March China NBS
manufacturing PMI is expected to cross the wires with a reading of 51.2,
according to a Bloomberg News survey, up from the 50.6 reading in
February.To get more news about [b][url=https://www.wikifx.com/us_en/]WikiFX[/url][/b], you can visit wikifx.com official website.
03/31 WEDNESDAY |06:00 GMT | GBP GROWTH RATE (4Q20)
Even as the UK remains among the best in the world in terms of
vaccination rates, the outbreak of the B.1.1.7 mutation of COVID-19
still managed to slow things down at the end of last year. According to a
Bloomberg News survey, the final UK growth rate update for 4Q20 is due
to show a slight improvement, from -8.7% to -7.8% (y/y). Nevertheless,
any issues seen in the final 4Q20 UK GDP data may be overlooked as
markets continue to look forward to the UK regaining its pre-COVID
economic potential.
GBP/USD: Retail trader data shows 51.55% of traders are net-long with
the ratio of traders long to short at 1.06 to 1. The number of traders
net-long is 1.03% lower than yesterday and 21.51% lower from last week,
while the number of traders net-short is 14.46% higher than yesterday
and 13.02% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact
traders are net-long suggests GBP/USD prices may continue to fall.
Yet traders are less net-long than yesterday and compared with last
week. Recent changes in sentiment warn that the current GBP/USD price
trend may soon reverse higher despite the fact traders remain
net-long.US President Joe Biden has already seen his $1.9 trillion
stimulus program pass into law, but hes not done yet. Midweek, the
American president will not only deliver remarks regarding the
deployment of the first stimulus package and an update on COVID-19
vaccination efforts, but will also outline the framework for a sweeping
infrastructure spending program, encompassing climate change and public
education. While it remains to be seen whether or not the Biden
administration prioritizes changes to the Senate filibuster is another
story, but the markets may soon have a new carrot to chase.
The US economy is gaining steam, at least in the manufacturing sector,
which accounts for around 12% of all US jobs. Both readings of the
sector due out from Markit IHS and the Institute of Supply Managers
(ISM) suggest that March was a stronger month than February. The Markit
Manufacturing PMI survey is due in at 59 from 58.6, while the ISM
Manufacturing PMI is expected at 61.3 from 60.8. Cumulatively, running
at a pace near 60 suggests that US economic data momentum is improving
as vaccination efforts accelerate, priming the US economy for a strong
2Q21.
Following the surprisingly strong reading for February, the US labor
market is looking to build on that momentum with a reading nearly twice
as strong. Consensus surveys from Bloomberg News see the world‘s largest
economy having added +675K jobs in March following the gain of +379K
jobs in February. The unemployment rate (U3) is set to drop from 6.2% to
6%.At the end of the week, the US jobs report may serve as a key
stepping stone to reinvigorating the US-centric ’reflation trade: higher
yields, higher equities, and a higher US Dollar.
EUR/USD: Retail trader data shows 53.71% of traders are net-long with
the ratio of traders long to short at 1.16 to 1. The number of traders
net-long is 5.91% higher than yesterday and 19.69% higher from last
week, while the number of traders net-short is 20.68% higher than
yesterday and 9.13% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact
traders are net-long suggests EUR/USD prices may continue to fall.
Positioning is less net-long than yesterday but more net-long from
last week. The combination of current sentiment and recent changes gives
us a further mixed EUR/USD trading bias.