CM Trading Blog: Weekly Forex Market Analysis for the Week of May 27th until May 31st, 2013

Market Analysis – Equity markets retreat, Fed keeps Rates, GOLD bounces and USD/ZAR breaks higher

Our answer finally came last week with the retracement of the Dow Jones. The Dow retraced more than 300 points and gained back 200 points and was left with only 100 points retracement for last week’s trading session. In the trading profession we call this a healthy pullback, this in no way a clear indication that there should be a selloff that should follow. However we are entering the summer months which historically are quieter months with many people and countries beginning their holiday season. With that said keep a keen eye for opportunities but be aware that markets are trading lighter volume.

Gold bounced sharply last week but still not holding above $1,400 level and may find itself slowly trickling lower.

The South African Rand continues to weaken in the background of the summer months mining strikes. At these levels it’s not quite certain where it can weaken to. Keep in mind for a trader these are great opportunities.

Economic News for the week of May 27^th until 31^st 2013

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday
JPY (5:50AM GMT) – BOJ Gov. Kuroda Speaks	No major news	USD (3:00PM GMT) – CB Consumer Confidence	JPY (1:00AM GMT) – BOJ Gov. Kuroda Speaks EUR (Tentative) – Spanish 10-yr Bond Auction CAD (3:00PM GMT) – BOC Rate Statement CAD (3:00PM GMT) – Overnight Rate	AUD (2:30AM GMT) – Building Approvals m/m AUD (2:30AM GMT) – Private Capital Expenditure q/q USD (1:30 PM GMT) – Preliminary GDP q/q USD (1:30PM GMT) – Unemployment Claims USD (3:00PM GMT) – Pending Home Sales ALL CURRENCIES (Tentative) – G8 Meetings	NZD (2:00AM GMT) – ANZ Business Confidence CAD (1:30PM GMT) – GDP m/m ALL CURRENCIES (Tentative) – G8 Meetings