Week Ahead August 5th – 9th
EURUSD pair closed last week’s trading session higher on disappointing nonfarm payrolls. As the FED kept interest rates unchanged as it was widely expected, the pair didn’t advance as the press conference that is follow treated water regarding the future path of FED’s policy on interest rates. Jerome Powell send mixed signal regarding September’s rate cut as he highlighted that FED need more evidence that CPI, PCE and labor market conditions will continue to improve. Although, during last week, the deteriorating economic releases from the US, raised some questions between investors and traders as the US economy started to form some weakness.
As for this week, traders and investors will continue to price-in FED’s policy and mainly will trade within technical levels. The next two weeks of summer holidays in the US and EU will keep markets muted without any high impact economic events. Always keep in mind that things can be derailed at any moment given the geopolitical tensions in the middle east.
On the economic calendar we have on Monday, the US ISM services PMI pointing higher at 51 On Tuesday, European retail sales pointing lower at 0.2% On Friday, German Harmonized index of consumer prices to remain unchanged at 2.6%
Technically the picture is positive after last week’s close above (50%) at 1.0910 In this week’s trading session if pair trades on the upside will test 1.0933 If trades on the downside will test 1.0871 (50%) Our traders opened new short positions at 1.0870 targeting profits at 1.0800 We are expecting more aggressive short positions above 1.0930 and new long positions at 1.0800
GBPUSD pair closed last week’s trading session lower on BOE interest rate cut by 0.25% as it was widely expected and pushed the pair in monthly lows. Although the pair recovered almost all lost ground as the disappointing nonfarm payroll in the US triggered a selloff in US Dollar. Mixed FED signals on future interest rate decisions and deteriorated US economic indicators weighted negative on US Dollar and help the pair to recovered lost ground generated by BOE.
As for this week, traders and investors will continue to price-in FED’s policy and mainly will trade within technical levels. The next two weeks of summer holidays in the US and EU will keep markets muted without any high impact economic events. Always keep in mind that things can be derailed at any moment given the geopolitical tensions in the middle east.
On the economic calendar we have on Monday, the US ISM services PMI pointing higher at 51
Technically the pair’s overall picture is neutral after last week’s close below (23.6%) at 1.2800 As for this week, if pair trades on the upside, will re-test 1.2860 (23.6%) Alternative, if trades on the downside, will test 1.2760 (38.2%) Our traders took profits on their short positions we are expecting new short positions at 1.2860 targeting profits at 1.2700 and new long positions at 1.2676 (50%) targeting profits at 1.2800
For more detailed economic calendar events please visit our live economic calendar on:
https://tentrade.com/economic-calendar/
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