Week Ahead November 18th – 22nd
EURUSD pair closed last week’s trading session lower on after US election results that gave full control to Donald Trump as the next US president with control of the congress and the house. The markets continue to price-in the “TRUMP TRADE” effect, that is poised to be stronger economy and tariffs on EU and Chinese goods. FED officials including FED chairman Powel sounded somehow hawkish during their speeches last week, refrain to signal any future interest rate reduction due to Trump’s tariff polices that may weigh on inflation.
As for this week, traders and investors will mainly focus on the economic calendar and. No other schedules events are due for the week. The pair will be technically and data traded. ECB’s president Lagarde and many other FED officials are due to speak through the week and investors must pay attention in order to understand what ECB’s future interest rate path will be.
On the economic calendar we have on Tuesday, the European Harmonized index of consumer prices to remain unchanged at 2.7% On Thursday, the US Services PMI pointing at 55 On Friday, German manufacturing PMI expected at 43, European manufacturing PMI at 46 and US Michigan consumer sentiment at 73
Technically the picture is negative after last week’s close below (100%) at 1.0538 In this week’s trading session if pair trades on the upside will test 1.0596 (100%) If trades on the downside will test 1.0454 the lowest level of 2023. Our traders are net long with positions between 1.0767 – 1.0500 targeting profits above 1.1000 We are expecting new short positions above 1.0913 and more aggressive long positions on the way down. The pair has entered oversold territory and need to be trade with attention, as a sharp reversal and price correction could take place.
GBPUSD pair closed last week’s trading session lower on after US election results that gave full control to Donald Trump as the next US president with control of the congress and the house. The markets continue to price-in the “TRUMP TRADE” effect, that is poised to be stronger economy and tariffs on EU and Chinese goods. FED officials including FED chairman Powel sounded somehow hawkish during their speeches last week, refrain to signal any future interest rate reduction due to Trump’s tariff polices that may weigh on inflation. UK economy looks deteriorated with the gross domestic product coming at -0.1 and this weighted heavily negative on GBP pushing the pair lower.
As for this week, traders and investors will mainly focus on the economic calendar. The main release that will move the pair on either direction is the UK CPI, due to be released on Wednesday and is expected to remain unchanged. The pair will be technically and data traded.
On the economic calendar we have on Wednesday, the UK core CPI pointing at 3.2 On Thursday, the US Services PMI pointing at 55 On Friday, UK retail sales expected lower at -0.3% UK Manufacturing PMI at 51.8 and US Michigan consumer sentiment at 73
Technically the pair’s overall picture is negative after last week’s close below 100%) at 1.2620 As for this week, if pair trades on the upside, will test 1.2677 (100%) Alternative, if trades on the downside, will test year’s lower levels of 1.2340. Our traders are net long between 1.3038 and 1.2615 targeting profits above 1.3038 We are expecting new short positions above 1.2973 and more aggressive long positions on the way down. Pair entered oversold territory and is expected to have a price correction and reversal on the upside.
For more detailed economic calendar events please visit our live economic calendar on:
https://tentrade.com/economic-calendar/
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