Prepare for a volatile market this week.
Australia will be coming out with Retails Sales and GDP this Tuesday and Wednesday respectively but the highlight is RBA’s rate decision on Tuesday. My personal bias for AUD is still a sell. I’d be willing to bet a portion to short at pre-event and would be willing to take a good 0.4-0.5% profit. If post-event turns bullish, I’ll average my position by heavily shorting the blow off stage.
BOC (Canada) will have a rate statement on Wednesday as well as employment report on Friday. My approach would be to trade the blow off stage post event results.
UK will have Inflation Report Hearings on Wednesday, but I do believe the movement of Sterling will most likely be driven by the debates in UK Parliamentary when they come back on September 3. Opposition will try to pass legislation to keep UK from crashing out of EU without a deal. Traders will observe how well opposition be able to formulate a bill. Sterling should fall if opposition MP’s couldn’t get their act together.
US will come out with a bunch of data before NFP Friday. The most volatility should come on Friday’s NFP release and speech from Powell. I remain bullish on USD and willing to buy a portion at pre-event.
Exciting week! A lot of pips to earn!