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Market Movers to Look Out for This Week - 24/5/21

5 Market Movers to Look Out for This Week – 24/5/21

By Mateo Jarrin Cuvi

Even though we’ve slightly modified the title for this weekly series, it still includes plenty of the good stuff to help guide your trades this week. Let’s go!

Confidence

Are Americans Losing Confidence?

You probably haven’t come across this economic indicator yet.

The Conference Board (CB) Consumer Confidence gauges the level of consumer confidence in economic activity, providing a good indicator of consumer spending.

Generally speaking, the higher the reading, the better for USD.

For instance, in April, the CBCC was a robust 121.7 after climbing from its April 2020 low of 85.7.

So what can we expect for May?

If an earlier survey organized by the University of Michigan is of any indication, then we’re in for a surprise.

As reported by the Financial Times, “the University of Michigan’s consumer sentiment survey fell to 82.8 in May, down from 88.3 in April, as consumers’ attitudes about current and future conditions weakened,” coming in way short of the 90.4 figure predicted by Reuters.

It seems many Americans are concerned about the creeping up of prices with US CPI during the past year growing at a rate of 4.2%, which stands as its largest hike since the financial crisis of 2008.

So jump in on this new trading opportunity by checking out the CBCC’s results for May, which will be released on Tuesday, May 25th at 2:00 pm GMT.

round

Tech Makes the World Go Round

Here’s what’s cooking in the earnings reports world this week!

Who: NVIDIA (.NVDA.OQ)
Day: Wednesday, May 26th
Time: 8:20 pm GMT
Note: This producer of GPUs for the gaming, automotive and AI worlds has posted an average surprise of 11.97% for its past two earnings reports. Will the streak live on another Q? Keep in mind the company’s stock has gained more than 1200% in value since 2016. EPS should be $2.61.

Who: Okta (.OKTA.N)
Day: Wednesday, May 26th
Time: 8:00 pm GMT
Note: Okta’s CMO told reporters earlier this year that the American identity and access management (IAM) company could end up bigger than Salesforce, a $200 billion business. This would represent a 500% gain for its fortunate investors. EPS should be $-0.62 for the upcoming quarter.

Who: Salesforce (.CRM.N)
Day: Thursday, May 27th
Time: 8:05 pm GMT
Note: 89.60%. That was by how much Salesforce exceeded expectations during the past two quarters. This follows a 2020 during which the company reported record sales, increasing its yearly revenue by 24% and making more than $20 billion ($21.3 to be exact) for the first time in its twenty-plus year history. EPS is expected to be $0.42.

Who: PagSeguro Digital (.PAGS.OQ)
Day: Thursday, May 27th
Time: After Market Close (AMC)
Note:PagSeguro’s net income for Q4 2020 was 4.2% lower due to a hike in total expenses that offset its total net revenue for the quarter. Plus, during the past three months, the company’s stock value has dropped by 15%. Will Q1 2021 results show a recovery of sorts for the Brazilian online and mobile payment giant?

Mark them on your calendar ASAP and line up your trades!

Interest

The Immovable Kiwi Interest Rate

New Zealand’s interest rate has been stuck at 0.25% since March 2020 as a result of the COVID-19 pandemic and the government’s need to boost the economy.

During the last RBNZ announcement, which confirmed the 0.25% interest rate, the financial markets hardly reacted as this was a foregone conclusion.

Will this be any different on Wednesday, May 26th at 2 am GMT when the RBNZ issues its latest decision on interest rates?

Analysts predict they will remain unchanged until the end of 2022, so tune in to find out and prepare your NZD trades!

It’s always wise to listen carefully to the monetary policy statement and the words and phrases being used by the spokesperson as this might reveal future policy changes and potentially move the market as a result.

Gains

US GDP’s Making Gains

Will the US’s economy continue to steamroll its way into recovery following a 6.4% rate of GDP growth (QoQ) in April?

Analysts suggest the ship is sailing steady and predict a 6.5% reading for this month on a QoQ basis.

Overall, things are looking up for the US economy.

According to Marketplace, “growth in the current April-June period is expected to be faster still, potentially reaching a 10% annual pace or more , led by an increase in people willing and able to travel, shop, dine out and otherwise resume their spending habits.”

So find out on Thursday, May 27th at 12:30 pm GMT how US GDP is progressing and line up your USD trades!

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Red Hot Housing!

We haven’t featured this indicator in a while, so get ready!

As a refresher, the Pending Home Sales Report measures the change in the number of homes under contract to be sold.

The higher than expected result is good for the USD and the US economy, while a lower than expected result is not.

The last reading, for example, was 1.9%, a disappointing figure considering the forecast for 5% growth.

According to FXPRIMUS Head of Investment Research Kaia-Reet Parv, “the US housing sector has been under quite a bit of pressure due to low supply, considering that it has been red hot as a result of the historic low mortgage rates, people leaving the big coastal cities, and commodities such as lumber jumping to record highs.”

So pay close attention to the numbers coming out on Thursday, May 27th at 2:00 pm GMT and trade USD based on home sales!

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*Any opinions, news, research, analyses, prices or other information contained here are provided as general market commentary and do not constitute investment advice. FXPRIMUS does not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.


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