Week Ahead November 13 – 17

EURUSD pair closed last week’s trading session lower on FED’s chairman Jerome Powell speech. Mr. Powell reiterated the central bank’s approach that any interest rate change will solely be depended on the economic releases. Although the comments that the central bank did not yet achieve to bring inflation at 2% was taken hawkish from market participants and fueled demand for US Dollar as is now pricing in another potential interest rate hike.

As for this week traders and investors will focus on the economic releases from both sides and mainly the CPI numbers form the US and EU. A higher than expected US CPI will boost US Dollar and could add downside pressure on the pair. Many FED officials ae due to speak out during the week. Is good to keep an ear on what they will say.

On the economic calendar we have on Tuesday, European Gross domestic product to remain unchanged at 0.1% and US Consumer price index unchanged ta 4.1% On Wednesday, US Retail sales expected lower at -0.1% On Friday, European Harmonized index of consumer prices expected to remain unchanged at 4.2%

Technically the picture is neutral after last week’s close above (23.6%) at 1.0683 In this week’s trading session if pair continues on the upside and break above (38.2%) level will change the picture to positive and could open the road for 1.0887 (50%) If resumes on the downside it will retest 1.0624 (23.6%) Our traders are long at 1.0530 targeting profits above 1.0900 we are expecting more  buyers at 1.0624 and short sellers at 1.0965

GBPUSD pair closed last week’s trading session lower on hawkish FED’s Powell’s speech. Mr. Powell reiterated the central bank’s approach that any interest rate change will solely be depended on the economic releases. Although the comments that the central bank did not yet achieve to bring inflation at 2% was taken hawkish from market participants and fueled demand for US Dollar as is now pricing in another potential interest rate hike. Even though the economic releases from the UK were on line and marginally better than expected the pair did not managed to continue its rally.

As for this week traders and investors will mostly focus on the CPI numbers from both the US and the UK. The higher the printing the higher demand will be triggered for any of the currencies. The heavy economic calendar from the UK will defy the next move of the GBP. Speeches from both central banks are good to be followed as will give clues on what will be the next policies.

On the economic calendar we have on Tuesday, the UK ILO unemployment rate pointing at 4.2% and US CPI to remain unchanged at 4.1% On Wednesday, UK CPI expected lower at 5.8% and US Retail sales at -0.1% On Friday, UK retail sales expected higher 0.3%

Technically the pair’s overall picture is negative after last week’s break and close below (23.6%) at 1.2223 As for this week, if pair resumes on the upside, will need to break and close above 23.6% to change the picture back to neutral. Alternative, if continues on the downside, will retest 1.2050 (0%) Our traders are long at 1.2150 and 1.2300 targeting profits above 1.2700. We are expecting more long positions at 1.2050 and short sellers at 1.2700

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

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

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