Week Ahead April 1st – 5th
EURUSD pair closed last week’s trading session lower on better than expected economic releases in the US and hawkish comments from FED’s officials. The upbeat US GDP of 3.4% gave traction to the US Dollar and drove the pair lower. FED’s Officials sent some hawkish message during their speech, highlighting that is no rush for rate cut at this stage.
As for this week, traders and investors will mainly focus on the US nonfarm payroll due to be released on Friday with expectations that 200K new jobs added. The European CPI will be the most important catalyst behind any Euro price action. A higher print will add pressure on ECB to keep interest rates unchanged and this will benefit Euro and push the pair higher, and the opposite if CPI will be lower.
On the economic calendar we have on Monday, the US ISM manufacturing PMI pointing higher at 48.4 On Tuesday, German consumer price index expected higher at 0.6% German Harmonized index of consumer prices lower at 2.4% On Wednesday, European Harmonized index of consumer prices to remain unchanged at 2.6% US ADP employment expected at 130K and US ISM services PMI unchanged at 52.6 On Friday, European retail sales expected at -1.2% US Average hourly earnings higher at 0.3% and Non-farm payrolls at 200K
Technically the picture is negative after last week’s close just above (38.2%) at 1.0788 In this week’s trading session if pair trades on the downside will test 1.0762 (38.2%) a break and close below this level will open the road for 1.0700 If trades on the upside will retest 1.0866 and if breaks and closes above (50%) will open the road for 1.0960 Our traders open new long positions at 1.0863 and 1.0803 targeting profits at 1.0900 We are expecting more aggressive long positions below 1.0760 and new short positions above 1.0900
GBPUSD pair closed last week’s trading session marginally higher despite hawkish comment from FED’s officials highlighting that is not in a rush to cut rates. The economic releases from both sides came out better than expectations and this helped the pair to balance any significant reaction.
As for this week, traders and investors will mainly focus on the US nonfarm payroll due to be released on Friday. From the UK there are no economic releases and not any scheduled BOE speeches. The pair will be in the mercy of US Dollar for the week ahead.
On the economic calendar we have on Monday, the US ISM manufacturing PMI pointing higher at 48.4 On Wednesday, US ADP employment expected at 130K and US ISM services PMI unchanged at 52.6 On Friday, US Average hourly earnings higher at 0.3% and Non-farm payrolls at 200K
Technically the pair’s overall picture is neutral after last week’s close just above (50%) at 1.2620 As for this week, if pair trades on the upside, will retest 1.2715 (61.8%) Alternative, if trades on the downside, will retest 1.2530 Our traders took profit all their short positions and now turn long at 1.2600 targeting profits at 1.2800 Our traders are long at 1.2566 targeting profits above 1.2800 We are expecting more aggressive long positions on the way down and new short sellers above 1.2700 targeting profits at 1.2600
For more detailed economic calendar events please visit our live economic calendar on:
https://tentrade.com/economic-calendar/
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