Gold - Friday June 2
Market Structure:
- Weekly: Bullish
- Daily: Bearish
- 4H: Bullish
- 1H: Bullish (Ranging)
Data in focus:
- NFP
- Unemployment Rate
- Hourly Earnings
Fundamental Drivers:
- FED officials hinting towards a "skip" for this meeting which lowers market expectations of rate hike this month, but leaving the door open for hikes in future
- FED is "data-dependent" meaning inflation, labor market, and overall economic data has more market impact as the market will be anticipating future monetary policy
- Solid economic data, including today's NFP, will mean economy is strong which leads to more persistant inflation, which leads to markets pricing in higher rate hikes for longer (strong data -> USD bull)
- Weak economic data means the economy is slowing which will help lower inflation, which leads to markets pricing in rate cuts sooner (weak data -> USD bear)
Market Structure:
- Weekly: Bullish
- Daily: Bearish
- 4H: Bullish
- 1H: Bullish (Ranging)
Data in focus:
- NFP
- Unemployment Rate
- Hourly Earnings
Fundamental Drivers:
- FED officials hinting towards a "skip" for this meeting which lowers market expectations of rate hike this month, but leaving the door open for hikes in future
- FED is "data-dependent" meaning inflation, labor market, and overall economic data has more market impact as the market will be anticipating future monetary policy
- Solid economic data, including today's NFP, will mean economy is strong which leads to more persistant inflation, which leads to markets pricing in higher rate hikes for longer (strong data -> USD bull)
- Weak economic data means the economy is slowing which will help lower inflation, which leads to markets pricing in rate cuts sooner (weak data -> USD bear)