Week Ahead June 19 – 23

EURUSD pair closed last week’s trading session higher on ECB’s hawkish comments. The FED maintained interest rates unchanged as it was widely expected, although, they keep the door open for another 0.25% hike by the end of the year. ECB raised rates by 0.25% and highlighted that the central bank will do another 0.25% in July. The divergence between the two central banks helped the pair to trade on the upside.

As for this week traders and investors will mainly focus on FED’s Powell testifies and many other FED officials’ speeches. All need to be closely monitor, as, will guide traders and investors through FED’s interest rate path.

On the economic calendar we have on Tuesday, German Producer price index pointing lower at -0.7%On Thursday, European consumer confidence pointing at -17 On Friday, European Composite PMI pointing lower at 52.5

Technically the picture is positive after last week’s break and close above 23.6%. In this week’s trading session if pair continues on the upside will test 1.1100 (0%) Alternative a break and close below 1.0915 (23.6%) will change the picture back to neutral and retest 1.0810 (38.2%). Our traders took profit all their long positions and few short sellers appear at 1.0915 targeting profits at 1.0800 we are expecting more aggressive short sellers on the way up and new buyer at 1.0715

GBPUSD pair closed last week’s trading session higher on FED’s rate decision and dovish comments. The central bank maintained unchanged the interest rates as it was widely expected and kept the door open for another 0.25% increase by the end of the year. The dovish FED decision gave to traders and investors the chance to buy the pair and repositioned ahead of BOE meeting.

As for this week traders and investors will mainly focus on BOE monetary policy and rate decision. The central bank expected to raise interest rates by 0.25%. Although the comments after the decision during the speech of BOE’s Bailey will guide investors and traders, through the future path of the central bank.  FED’s Powell testifies and many FED’s officials are due to speak during the week and need to closely followed as investors and traders will gather information on what’s next.

In the economic calendar we have on Wednesday, UK Consumer price index pointing lower at 8.5% On Friday, UK retail sales expected lower at -2.3% and UK Services PMI lower at 54.8

Technically the pair is positive after last week’s close, at 1.2823 As for this week if pair continues on the upside will add another 100 pips to new higher level at 1.2923 Alternative if trades on the downside, as a correction move, due to its overbought technical territory, will retest 1.2678 Short sellers are stopped out all their short positions and waiting for new technical indicators. We are expecting to appear new short sellers if breaks on the upside and new buyer at 1.2500

For more detailed economic calendar events please visit our live economic calendar on: 

http://tentrade.com/economic-calendar/

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