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US Debt Ceiling: How Will it Affect the Markets? USD Stronger, For Now.

   

Hey Valutraders! Did you see last week’s rally of USD?

Subscribe to Free Valutrades Signals at https://www.valutrades.com/en/trading-signals

I’m Brad Alexander and in this week’s Market Blast Fundamentals let’s take a look at USDJPY, the NASDAQ, The S&P500, EURUSD, GBPUSD, and USDCAD.


The USD has rallied but this may be short-lived if the US Congress and the White House do not agree to raise their debt ceiling by 1 June.Screenshot 2023-05-15 at 17.43.50

In fact, we are already seeing a pullback in most pairs and we also see quite a few technical opportunities which we will look at tomorrow.

If the debt ceiling crisis cannot be resolved the results will be quite simple:

The USD will fall, 

And the US Indices will fall along with them.Screenshot 2023-05-15 at 17.44.20

Last week we looked at these indices and the technical patterns which their price action is producing.

However, in this case, fundamental events will drive price action and, to be honest until the markets know what is going on, we may not see much volatility.

Having said that, we have a busy week ahead of us with all major economies announcing something impactful this week.

The GBP will be affected by UK employment data and investors will be watching for hints from the Bank of England about future Interest Rate rises.Screenshot 2023-05-15 at 17.44.28

We will see the same in the US with Jerome Powell speaking on Friday and certainly, he will be asked about the impact of the debt ceiling crisis.

Christine Lagarde will be answering similar questions about this and future rate rises on Tuesday and Thursday, after Employment figures earlier on Tuesday.

As well, more news from Australia, New Zealand and GDP figures from Japan.Screenshot 2023-05-15 at 17.44.41

The JPY could use some good news as, as we can see, it is getting weaker again and we will look at this from the technical side tomorrow.

Thanks for watching and don’t forget to subscribe to Valutrades Signals and the link will be in this video’s description below.
 
Also, subscribe to our YouTube channel and register on the Valutrades website to get notifications on new content as it happens.

That’s all for now.  Happy trading with Valutrades and we will see you next time.

CFDs and FX are leveraged products and your capital may be at risk.15 May 2023 Fundamentals EN TN

 

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The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

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