Week Ahead October 21st – 25th
EURUSD pair closed last week’s trading session lower after ECB reduced its interest rates by 0.25%. As it was widely expected the interest rate reduction was anticipated by markets and the reaction was limited. The pair recover some lost ground on Friday followed the ECB’s comments that any future interest rate reduction will be depending on the economic data.
As for this week, traders and investors will mainly focus on the economic calendar and mostly on the speeches of ECB’s and FED’s officials. Both central banks’ officials are due to speak during the week and following their position on next interest rate decisions will generate some choppy volatility during the week.
On the economic calendar we have on Thursday, German services PMI pointing lower at 50.5 European services PMI higher at 51.6 and US Manufacturing PMI at 55.2 On Friday, US Durable goods orders expected lower at -0.9%
Technically the picture is negative after last week’s downside move and close below (50%) at 1.0866 In this week’s trading session if pair trades on the upside will test 1.0913 (50%) If trades on the downside will re-test 1.0812 last week’s lowest level. Our traders’ took profit all their short positions and now are net long with positions between 1.0835 – 1.0930 We are expecting new short positions above 1.0978 and more aggressive long positions on the way down.
GBPUSD pair closed last week’s trading session unchanged after an initial dip on lower, but, persisting inflation number. Last week’s dip on the pair was mostly related to pre-position of traders ahead of the CPI release. On Friday the pair retreated higher as the lower CPI and the better than expected UK retail sales triggered some buyers in the pair.
As for this week, traders and investors will mainly focus on the economic calendar and mostly on the speeches of BOE’s and FED’s officials. Both central banks’ officials are due to speak during the week and following their position on next interest rate decisions will generate some choppy volatility during the week.
On the economic calendar we have on Thursday, the UK Services PMI pointing lower at 52.2 and US Manufacturing PMI at 55.2 On Friday, UK Gfk consumer confidence pointing lower at -20 and US Durable goods orders expected lower at -0.9%
Technically the pair’s overall picture is neutral after last week’s close above (50%) at 1.3047 As for this week, if pair trades on the upside, will test 1.3137 (38.2%) Alternative, if trades on the downside, will test 1.2958 (61.8%) Our traders are net long starting at 1.3038 and 1.2985 targeting profits above 1.3200 We are expecting new short positions above 1.3200 and more aggressive long positions on the way down.
For more detailed economic calendar events please visit our live economic calendar on:
https://tentrade.com/economic-calendar/
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