Week Ahead February 19 – 23
EURUSD pair closed last week’s trading session unchanged after a weekly choppy trading session. Dow Jones had its biggest drop since March 2023 on Tuesday, plunging more than 500 points. S&P 500 and the Nasdaq, dropping 1.37% and 1.8%, respectively. Inflation data came in above analysts’ estimates, raising doubts that the FED will be able to cut rates. Later during the week things get back to normal as the US retail sales came out weaker than expectations. Hawkish comments from ECB’s Lagarde fueled demand for Euro and brought the pair back to last week’s closing point.
As for this week, traders and investors will mainly focus on the FOMC released due on Wednesday. Looking into last week’s US inflation we are expecting minutes to be hawkish and trigger a new demand of US Dollar, pushing the pair on the downside.
On the economic calendar we have on Thursday, German Manufacturing PMI pointing higher at 46.1, European Manufacturing PMI higher at 47.1 US Services PMI lower at 52 and US manufacturing PMI lower at 50.2
Technically the picture remains neutral after last week’s close above (38.2%) at 1.0776 In this week’s trading session if pair trades on the downside will test 1.0700 If resumes on the upside it will retest 1.0858 (50%) Our traders still long at 1.0861 and 1.0762 targeting profits at 1.1100 We are expecting more aggressive long positions on the way down and new short positions at 1.1100
GBPUSD pair closed last week’s trading session marginally lower after a weekly choppy trading session. Dow Jones had its biggest drop since March 2023 on Tuesday, plunging more than 500 points. S&P 500 and the Nasdaq, dropping 1.37% and 1.8%, respectively. Inflation data came in above analysts’ estimates, raising doubts that the FED will be able to cut rates. Later during the week pair retreaded higher as the US retail sales disappointed investors. Hawkish comments from BOE’s MPs regarding interest rates helped the pair to stay higher.
As for this week, traders and investors will mainly focus on the FOMC released due on Wednesday. Looking into last week’s US inflation we are expecting minutes to be hawkish and trigger a new demand of US Dollar, pushing the pair on the downside.
On the economic calendar we have on Thursday, UK Manufacturing PMI pointing higher at 47.1 US Services PMI lower at 52 and US manufacturing PMI lower at 50.2
Technically the pair’s overall picture is positive after last week’s close above (50%) at 1.2600 As for this week, if pair trades on the upside, will test 1.2723 A break and close above (61.8%) will accelerate gains and open the road for 1.3126 Alternative, if trades on the downside, will retest 1.2531 Our traders stay with short positions at 1.2723 targeting profits at 1.2500. We are expecting more aggressive short sellers above 1.2900 targeting profits at 1.2500 and long positions at 1.2460 targeting profits at 1.2825
For more detailed economic calendar events please visit our live economic calendar on:
https://tentrade.com/economic-calendar/
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