Stocks fall, gold falls, USD soars how to take advantage this week.


How to take advantage this week.


We hope you all took advantage of our last blog where we strongly hinted at a hawkish sentiment.


As expected, the Jackson Hole Symposium by the world’s bankers and Jerome Powell did not let us down.


Gold fell, oil fell, and the USD soared as we predicted.


If you did not take advantage of our predictions, do not fret, we have a further opportunity this week to make some strong trades.


Our Focus turns to U.S. nonfarm payroll data (NFP) on Friday 2 September at 13:30 GMT.


Simply put, if the NFP data shows a strong jobs market in the USA, this will give the central bank even more room to tighten monetary policy. This means, a potential further increase in interest rates in the coming weeks.


This offers a good opportunity to a trader.


Since the Jackson Hole Symposium, the stock market has fallen by c5%. This is because the FED has shown they will do whatever it takes to control this 40-year high inflation. Therefore, there will be continued pain as they continue to increase interest rates.


Meanwhile, Chinese PMI (Purchasing Manager Index) data due this week is expected to point to ongoing weakness in the world’s number two economy. This just exasperates the economic downbeat mood.


So how do we find opportunities in times of uncertainty? The answer is safe haven currencies.


The USD is at 20-year highs and Fridays NFP data could make it even stronger.


We are excited about this because if the data matches the forecasts of 295k jobs, unemployment to remain at 3.5% and average hourly earnings at 0.4% will mean the fed reserve will continue its hawkish interest rate policy.


In other words, they will raise interest rates probably higher than the 0.5% already factored in over the coming weeks.


So, expect the markets to react instantly on this Friday’s release.


If the actual data matches the expectations or is higher than expectations, we are forecasting another round of strengthening USD, and gold and oil to fall.


Our Predictions:


Interest rates are rising means gold is falling.


Gold prices will take a tumble this Friday if the NFP data is in our favour. Gold has already fallen from its high of $2,052.60 on 8 March to $1,720 as of today. Expect it to fall to a support of $1700.


2. JPY/USD


Another trade prior to this week’s data must be the USD/JPY. It has hit a five-week high as a rush to safety strengthens US dollar & yields. As Powell emphasises hawkish rate hikes, Bank of Japan’s Chairman, Kuroda repeats his love for negative interest rates. Therefore, JPY/USD is a strong sell this week.


3.GBP/USD


The NFP report generally affects all major currency pairs, but one of the favourites among us this week must be the British pound/U.S. dollar (GBP/USD).


Note, the UK is in turmoil, economically and politically. So, this will be a great pair. Therefore, GBP/USD is a strong sell this week.



4. Oil


Although oil has found some support due to OPEC cuts, we are predicting the usual volatility with a preference to a sell. We are watching oil on the side-lines and not trading it during this announcement. We are waiting for a better sell signal before jumping into this trade.


Enjoy the data releases this week and take advantage.



See how to trade NFP blog.


https://www.chumpprofit.com/post/how-to-trade-the-nfp


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