Week Ahead June 26 – 30

EURUSD pair closed last week’s trading session lower on deteriorated economic releases from the EU and on hawkish comments of FED’s Powell during his testimony. The deteriorated economic releases in the EU may weight negative on ECB’s next interest rate decision and hold interest rates unchanged. In such event the pair may suffer more losses as the divergence between the two central banks is closing.

As for this week traders and investors will mainly focus on economic releases from both the US and the EU with the main ones the CPI. The numbers will defy the next central banks’ rate decisions. A higher than expected number will add odds for another rate hike. The lower than expected will keep both central banks on hold.

On the economic calendar we have on Tuesday, the US Durable goods orders pointing lower at -1% On Thursday, German Harmonized index of consumer prices expected higher at 6.7% and US Gross domestic product unchanged at 1.3% On Friday, German retail sales pointing lower at -6.7%, EU Harmonized index of consumer prices higher at 5.5% and US Michigan consumer sentiment unchanged at 63.9

Technically the picture is neutral after last week’s break and close below 23.6%. In this week’s trading session if pair resumes on the upside will re-test 1.1100 if breaks above will re-test 1.1100 (0%) Alternative a break and close below 1.0814 (38.2%) will change the picture back to negative and test 1.0720 (50%). Our traders are short at 1.0915 -1.1000 targeting profits at 1.0800 we are expecting more aggressive short sellers on the way up and new buyers at 1.0815

GBPUSD pair closed last week’s trading session lower after BOE hike interest rates by 0.5%. As it was widely expected and priced-in the initial reaction was a spike on the upside that later erased by a downside move. The hawkish comments from FED’s Powell during his testimony weighted negative on pair and resulted to more losses.

As for this week traders and investors will mainly focus on the economic releases. The speeches from BOE’s officials will be closely monitor as will provide information on the next rate decision of the central bank.

In the economic calendar we have on Tuesday, the US Durable goods orders pointing lower at -1% On Thursday, US Gross domestic product unchanged at 1.3% On Friday, UK gross domestic product expected to remain unchanged at 0.1% and US Michigan consumer sentiment unchanged at 63.9

Technically the pair is positive after last week’s close, at 1.2717 As for this week, if pair continues on the upside, will re-test 1.2923 Alternative, if continues on the downside, will retest 1.2510 (23.6%) New short sellers appeared at 1.2790 targeting profits at 1.2510 we are expecting more aggressive short sellers on the way up and new buyers at 1.2510

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

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

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