Week Ahead September 4 – 8
EURUSD pair closed last week’s trading session unchanged after a choppy weekly trading session. The ups and downs were mainly due to economic releases. For the Euro side, the CPI releases show that inflation is stabilized in the Euro zone and this weighted negative on Euro as is waiving any chances for another interest rate increase. From the US dollar side, the non-farm payroll came out better than expectations, although the worse than expected ADP and gross domestic product balanced the pair’s reaction.
As for this week traders and investors will be focus on the speech from ECB’s Christine Laggard and the German Harmonized index of consumer prices. Technical levels will be taken into consideration for any break out on either side.
On the economic calendar we have on Wednesday, European retail sales pointing at -1.2%and US ISM services PMI lower at 52.6 On Thursday, European Gross domestic product to remain unchanged at 0.6% On Friday, German Harmonized index of consume process to remain unchanged at 6.4%
Technically the picture is negative after last week’s close below (61.8%) at 1.0773 In this week’s trading session if pair continues on the downside could test (100%) level. If resumes on the upside and break and close above 1.0883 (61.8%) could open the road for 1.0967 (50%) Our traders are long between 1.1000 and 1.0770 targeting profits at 1.1270 We are expecting more aggressive buyers to appear below 1.0770 targeting profits above 1.1200 and sellers at 1.1270 targeting profits at 1.1050
GBPUSD pair closed last week’s trading session unchanged after a choppy weekly trading session. The ups and downs were mainly due to economic releases. For the GBP side, the lack of any high impact economic releases helped the GBP to gather some strength. Although dovish comments from BOE’s Bill, weighted negative on GBP and resulted to a downside move. From the US dollar side, the non-farm payroll came out better than expectations, although the worse than expected ADP and gross domestic product balanced the pair’s reaction
As for this week traders and investors will mostly trade in technical levels. The lack of any economic releases from the UK, will let the pair in the mercy of US Dollars with focus on the economic releases from the US.
On the economic calendar we have on Tuesday the UK BRC retail sales pointing at 1.8% On Wednesday, the US ISM Services PMI pointing lower at 52.6
Technically the pair is negative after last week’s close below (61.8%) at 1.2587 As for this week, if pair resumes on the upside, will need to break and close above 61.8% to change the picture back to neutral. Alternative, if continues on the downside, will test 1.2320 Our traders keeping their long positions at 1.2730 and 1.2623 targeting profits above 1.3000 We are expecting short sellers at 1.3140 targeting profits at 1.2750 and more aggressive buyers below 1.2600
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