Trading Insights: Expect increased volatility over the next 48 hours

Market Commentary

Major economic data due to be released over the next two days

• Thursday July 6th: US JOLTs
• Friday July 7th: US Nonfarm payrolls (NFP)

Latest development moving markets

Released yesterday: US FOMC minutes suggest increasing chances for higher US interest rates.

Risk appetite appears to have slowed as traders adjusted to the increased prospects that despite signs US inflation is slowing, the situation is that inflation remains elevated.

Buy the dips or get defensive?

The short term “risk off” conditions could be a short term correction, while longer term trends appear to remain intact.

The underlying economy remains healthy which could further support the case for the Fed to hike rates further, since with a still strong jobs market the economy looks well positioned to handle higher rates.

Market Movers last 5 days:

Silver up 2.7% last 5 days

USD vs the JPY lower last 5 days

Brent Crude Oil higher last 5 days

Germany 40 Index lower last 5 days

Do you have an opinion on where financial markets are heading? Express your opinion and trade with CFDs.

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Today’s economic calendar

US JOLTs Job Openings release expected to play a key role in today's USD price action

• The JOLTs report measures all the open US Job positions that need to be filled on the last day of the month
• JOLTs data offers traders and investors insights into the strength of the US economy since higher JOLTs imply that companies need more people i.e. better economic conditions. In contrast, falling JOLTs imply that companies need fewer people to work.

Source: TradingView / J. Knobel July 6 2023 6:00 UTC

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Trading insights & strategy

SPX500 trending

Higher tops and higher bottoms on price suggest an uptrend, current price remains contained within its multi-month upward sloping price channel.

• Current price $4,434
• Upside prospects for an extension toward $4,530
• Downside risk below the internal upward sloping trendline spotted at $4,405 (see chart) could increase the risk for a deep price correction of the prevailing uptrend, which could expose the lower 4,215s.