Week Ahead August 7 – 11
EURUSD pair closed last week’s trading session unchanged after a tide range trading week. US non-farm payroll came out worse that expectations although the hourly earning came out positive, and balanced the reaction. Economic releases from bot the US and EU were mixed and kept the pair hovering between 1.0950 – 1.10
As for this week traders and investors will mainly focus on the inflation numbers from both the EU and the US. The light economic calendar with not any scheduled speeches from central banks’ officials, and the beginning of the summer holidays will dominate the markets and keep things calm.
On the economic calendar we have on Tuesday, German Harmonized index of consumer prices to remain unchanged at 6.5% on Thursday, US Consumer price index pointing lower at 4.7% and on Friday, US Michigan consumer sentiment expected lower at 70.9.
Technically the picture is positive after last week’s close above (38.2%) at 1.1007 In this week’s trading session if pair continues on the upside and close above (23.6%) could accelerate gains and re-test 1.1270. If resumes on the downside and break and close below 1.0917 (38.2%) could open the road for 1.0815 (50%) Our traders are long at 1.1000 and 1.0920 targeting profits at 1.1270 We are expecting more aggressive buyers to appear below 1.0900 targeting profits above 1.1200 and sellers at 1.1270 targeting profits at 1.1050
GBPUSD pair closed last week’s trading session lower on disappointing BOE monetary policy release. The central bank has raised it interest rate to 5.25% as it was widely expected and already priced-in the pair. Although comments that reduced their inflation target weighted negative on the pair. On Friday, the disappointing US non-farm payroll helped the pair to recover some lost ground.
As for this week traders and investors will mainly focus on the UK gross domestic release and the US CPI. The light economic calendar with not any scheduled speeches from central banks’ officials, and the beginning of the summer holidays will dominate the markets and keep things calm.
In the economic calendar we have on Thursday, US Consumer price index pointing lower at 4.7% and on Friday, UK Gross domestic product expected to remain unchanged at 0.2% and US Michigan consumer sentiment expected lower at 70.9.
Technically the pair is positive after last week’s close above (23.6%) at 1.2747 As for this week, if pair resumes on the upside, will test 1.3140 Alternative, if continues on the downside, will re-test 1.2650 last week’s lower level. Our trader entered long positions at 1.2730 and 1.2623 targeting profits above 1.3000 We are expecting short sellers at 1.3140 targeting profits at 1.2750 and more aggressive buyers below 1.2600
For more detailed economic calendar events please visit our live economic calendar on:
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