Week Ahead November 27 – December 1
EURUSD pair closed last week’s trading session marginally higher on the lack of any high impact economic releases from the US and due to the two days of bank holiday for the thanksgivings. FOMC maintained policy unchanged as it was widely expected. In the EU the economic releases came out better than expectations although the impact was limited as market participants took the speech of ECB’s Muller as dovish. Muller commented that inflation is clearly trend of slowing and won’t need to increase rates any more.
As for this week traders and investors will focus on the economic releases from both sides the US and EU, with the main ones the CPI releases from both sides. Many FED’s officials’ speeches including FED’s Chairman Powell will dominate markets during the week and could triggered high volatility in the pair.
On the economic calendar we have on Wednesday, German Consumer price index pointing lower at -0.1% US Gross domestic product expected higher at 5% On Thursday, German retail sales expected lower at -1.9% European Harmonized index of consumer prices lower at 3.9% and US Core personal consumption expenditures lower at 3.5% On Friday, US ISM manufacturing PMI pointing higher at 47.6
Technically the picture is positive after last week’s close above (50%) at 1.0936 In this week’s trading session if pair continues on the upside and break and close above (61.8%) could open the road for 1.1300 (100%) If resumes on the downside it will retest 1.0750 (38.2%) Our traders opened new short positions at 1.0960 targeting profits at 1.0700. We are expecting more aggressive short positions on the way up and new buyers at 1.0700
GBPUSD pair closed last week’s trading session higher on the lack of any high impact economic releases from the US and better than expected economic releases in the UK. Hawkish comments from BOE’s Hue Pill helped the pair to trade higher. The MP commented that is too early to declare victory against inflation and central bank should stay cautions. The FOMC release was taken as dovish by keeping monetary policy unchanged and this favored the pair to close the session higher.
As for this week traders and investors will mostly focus on the economic releases from the US. The speeches from many BOE and FED officials will guide investors and traders on what the central banks is about to do regarding their monetary policy.
On the economic calendar we have on Wednesday, US Gross domestic product pointing higher at 5% On Thursday, US Core personal consumption expenditures lower at 3.5% On Friday, US ISM manufacturing PMI pointing higher at 47.6
Technically the pair’s overall picture is positive after last week’s break and close above (50%) at 1.2600 As for this week, if pair continues on the upside, will test 1.2730 (61.8%) Alternative, if resumes on the downside, will retest 1.2463 (38.2%) Our traders are waiting for better levels before taking new positions. We are expecting new long positions at 1.2463 and short sellers at 1.2730
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