XAUUSD: Next week!
Updated
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Market participants will be closely monitoring the ISM Manufacturing PMI from the US on Monday. The survey's Prices Paid component increased to 51.3 in February from 44.5 in January, indicating a rise in input inflation. It remains uncertain whether the US Federal Reserve will increase its policy rate by 25 basis points in May. If the PMI survey reports an uptick in input inflation in the manufacturing sector, the USD may experience increased demand as a result of hawkish Fed bets. This, in turn, could lead to bearish pressure on XAU/USD. No details have been omitted in the paraphrased text.
On Wednesday, the US economic docket will include the ADP's private sector employment report and the ISM Services PMI. The ADP Employment Change is expected to plummet to 10K in March from 242K in February. A negative outcome could potentially have an adverse effect on the USD, leading to a pessimistic outlook for the March jobs report. Additionally, a significant decline in the Prices Paid sub-index of the ISM Services PMI may have a detrimental impact on the USD, and conversely, a rise could improve its performance.
The US Bureau of Labor Statistics is set to release labor market data for March before the weekend. The forecast suggests Nonfarm Payrolls (NFP) may experience a decrease of 8,000. It is advised to view any NFP reading below 50,000 as a warning signal that could cause a decline in US yields and the USD. Conversely, if NFP increases by 100K or more, it may lead to a decrease in XAU/USD due to the rise in yields.
The Average Hourly Earnings metric is expected to decrease to 4.5% annually from February's 4.6%. If this decline is greater than expected, it could negatively impact the USD, while an increase would have a positive effect. However, the NFP report is expected to be the main market mover. Additionally, market observers will continue to monitor statements from Fed officials. While they may not attempt to influence the markets prior to the release of the jobs report and March inflation data, hawkish comments may help the USD maintain its strength against other currencies.
Market participants will be closely monitoring the ISM Manufacturing PMI from the US on Monday. The survey's Prices Paid component increased to 51.3 in February from 44.5 in January, indicating a rise in input inflation. It remains uncertain whether the US Federal Reserve will increase its policy rate by 25 basis points in May. If the PMI survey reports an uptick in input inflation in the manufacturing sector, the USD may experience increased demand as a result of hawkish Fed bets. This, in turn, could lead to bearish pressure on XAU/USD. No details have been omitted in the paraphrased text.
On Wednesday, the US economic docket will include the ADP's private sector employment report and the ISM Services PMI. The ADP Employment Change is expected to plummet to 10K in March from 242K in February. A negative outcome could potentially have an adverse effect on the USD, leading to a pessimistic outlook for the March jobs report. Additionally, a significant decline in the Prices Paid sub-index of the ISM Services PMI may have a detrimental impact on the USD, and conversely, a rise could improve its performance.
The US Bureau of Labor Statistics is set to release labor market data for March before the weekend. The forecast suggests Nonfarm Payrolls (NFP) may experience a decrease of 8,000. It is advised to view any NFP reading below 50,000 as a warning signal that could cause a decline in US yields and the USD. Conversely, if NFP increases by 100K or more, it may lead to a decrease in XAU/USD due to the rise in yields.
The Average Hourly Earnings metric is expected to decrease to 4.5% annually from February's 4.6%. If this decline is greater than expected, it could negatively impact the USD, while an increase would have a positive effect. However, the NFP report is expected to be the main market mover. Additionally, market observers will continue to monitor statements from Fed officials. While they may not attempt to influence the markets prior to the release of the jobs report and March inflation data, hawkish comments may help the USD maintain its strength against other currencies.
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