May 26th – 30th
EURUSD pair closed last week’s trading session higher on Trump’s tariff announcement on European goods. Trumps threaten EU with 50% import tax on all European goods coming into the US. The announcement triggered selloff in US equity markets and weighted negative on US Dollar. The US tax reduction bill that passed from the house of representatives last week was an addition reason behind last week’s US Dollar slide as is expected to add another three trillion US Dollars in government losses on the already problematic US government debt.
As for this week, traders and investors will focus mainly on the economic calendar with the main release the US PCE due to be released on Friday. The new US-EU trade war is another factor that traders and investors should follow during this week’s trading session.
On the economic calendar we have on Wednesday the FOMC minutes release. On Thursday, US Gross domestic product expected lower at -0.3% On Friday, German retail sales pointing higher at 0.3% German Harmonized index of consumer prices steady at 2.2% and US personal consumption expenditures steady at 2.6%
Technically the picture is positive after last week’s close above (23.6%) at 1.1360 In this week’s trading session if pair trades on the upside will test 1.1474 A break out and close above 1,1474 will open the road for 1.1577 If trades on the downside will test 1.1269 (38.2%) A break and close below 1.1269 will add downside pressure and test 1.1029 Our traders took profit all their long positions and open new short positions starting at 1.1263 and 1.1359 targeting profits at 1.1134 we are expecting more aggressive short positions on the way up and new long positions at 1.1139
GBPUSD pair closed last week’s trading session higher on upbeat UK CPI release. The CPI release of 1.2% MoM will add pressure on BOE to keep interest rates unchanged for longer. Trump threaten EU with 50% import tax on all European goods coming into the US. The announcement triggered selloff in US equity markets and weighted negative on US Dollar. The US tax reduction bill that passed from the house of representatives last week was an addition reason behind last week’s US Dollar slide as is expected to add another three trillion US Dollars in government losses on the already problematic US government debt. UK retails sales unexpectedly rose above expectations and boosted demand for GBP pushing the pair even higher.
As for this week, traders and investors will focus mainly on the economic calendar with the main release the US PCE due to be released on Friday. The new US-EU trade war is another factor that traders and investors should follow during this week’s trading session.
On the economic calendar we have on Wednesday the FOMC minutes release. On Thursday, US Gross domestic product expected lower at -0.3% On Friday, US personal consumption expenditures expected to remain steady at 2.6%
Technically the pair’s overall picture is positive after last week’s close om (0%) at 1.3537 As for this week, if pair trades on the upside, will test 1.3600 A break and close above 1.3600 will open the road for 1.3700 Alternative, if trades on the downside, will test 1.3358 (23.6%) A break and close below 1.33358 will open the road for 1.3231 Our traders are short between 1.3305 – 1.3533 targeting profits at 1.3226 we are expecting more aggressive short positions on the way up and new long positions starting at 1.3226 (38.2%). Pair entered overbought territory and we ae expecting a sharp downside correction of at least 200 pips before the next leg up.
For more detailed economic calendar events please visit our live economic calendar on:
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