June 16th – 20th

EURUSD pair closed last week’s trading session higher on softer than expected US CPI. US Dollar face a new selloff session as the softer US CPI boosted expectations for more interest rate cuts on the coming FED’s meetings. Although the rally was halted by the end of the weekly session after Israel’s unexpected missile attack on Iran’s nuclear facilities. The new war between Israel and Iran triggered a selloff in global equity markets and boosted demand for safe heaven US Dollar.

As for this week, traders and investors will mainly focus on the war between Iran and Israel and whether US will join the war. In such case where US will join a full-scale war with Iran US Dollar will gather more strength and push the pair even lower. FOMC will be the main catalyst behind any price action. FED is not expected to cut interest rates at this meeting, although, the Interest rate projections and press conference may signal another rate cut in the future and in such scenario will boost US Dollar.

On the economic calendar we have on Tuesday, the US retail sales pointing lower at -0.5% On Wednesday, European Harmonized index of consumer prices to remain unchanged at 2.3%

Technically the picture is positive after last week’s close above  (23.6%) at 1.1543 In this week’s trading session if pair trades on the upside will test 1.1626 A break out and close above 1,1626 will open the road for 1.1726 If trades on the downside will test 1.1416 (23.6%) A break and close below 1.1416 will add downside pressure and test 1.1285 Our traders are standing with short positions starting between 1.1263 and 1.1580 targeting profits at 1.1169 we are expecting more aggressive short positions on the way up  and new long positions at  1.1169

GBPUSD pair closed last week’s trading session marginally higher. At the beginning of last week’s trading session pair traded higher on softer than expected US CPI. US Dollar faced a new selloff session as the softer US CPI boosted expectations for more interest rate cuts on the coming FED’s meetings. Although the rally was halted by the end of the weekly session after Israel’s unexpected missile attack on Iran’s nuclear facilities. The new war between Israel and Iran triggered a selloff in global equity markets and boosted demand for safe heaven US Dollar, pushing the pair back lower to where it started the weekly session.

As for this week, traders and investors will mainly focus on the war between Iran and Israel and whether US will join the war. In such case where US will join a full-scale war with Iran US Dollar will gather more strength and push the pair even lower. FOMC and BOE interest rate decisions will be the main catalyst behind any price action. FED and is not expected to cut interest rates at this meeting, although, the Interest rate projections and press conference may signal another rate cut in the future and in such scenario will boost US Dollar. BOE is not expected to cut interest rates on this meeting, although the UK CPI release ahead of Thursday’s minutes release may have impact on the future path of BOE’s interest rate decisions.

On the economic calendar we have on Tuesday, the US retail sales pointing lower at -0.5% On Wednesday, UK CPI expected lower at 3.7% On Friday, UK retail sales expected lower at -0.5%

Technically the pair’s overall picture is positive after last week’s close above (23.6%) at 1.3569 As for this week, if pair trades on the upside, will test 1.3632  A break and close above 1.3632  will open the road for 1.3700 Alternative, if trades on the downside, will test 1.3421 (23.6%) A break and close below 1.3421 will open the road for 1.3288 Our traders are short between 1.3305 – 1.3600 targeting profits at 1.3270 we are expecting more aggressive short positions on the way up and new long positions starting at 1.3270 (38.2%)

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

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

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