June 2nd – 6th
EURUSD pair closed last week’s trading session unchanged after a choppy weekly trading session. Mixed economic indicators from both the EU and the US let investors and traders on the side waiting for more clear catalyst. International trade court rejected Trump’s tariffs sending more uncertain in the markets triggering sell off in equity markets and weighted negative on US Dollar. Before closing bell on Friday, Trump ordered 50% tariffs on china triggering turbulences in global equities.
As for this week, traders and investors will mainly focus on ECB interest rate decision. The central bank is expected to cut interest rates by 0.25% China’s response on Trump’s 50% tariffs need to be taken seriously as it will weight negative on equity markets. From the US Dollar side, Nonfarm payroll will be the biggest catalyst behind any price action. From the EU side the main catalyst will be the European Harmonized index of consumer prices.
On the economic calendar we have on Monday, the US ISM manufacturing PMI to remain unchanged at 48.7 On Tuesday, European Harmonized index of consumer prices pointing lower at 2.5% On Wednesday, US ADP employment expected to add 120K new jobs, US ISM services PMI pointing higher at 52 On Friday, European gross domestic to remain unchanged at 1.2% US Nonfarm payrolls to add 130K new jobs and average hourly earnings pointing higher at 0.3%
Technically the picture is positive after last week’s close above (23.6%) at 1.1350 In this week’s trading session if pair trades on the upside will test 1.1474 A break out and close above 1,1474 will open the road for 1.1577 If trades on the downside will test 1.1269 (38.2%) A break and close below 1.1269 will add downside pressure and test 1.1029 Our traders are standing with short positions starting at 1.1263 and 1.1359 targeting profits at 1.1134 we are expecting more aggressive short positions on the way up and new long positions at 1.1139
GBPUSD pair closed last week’s trading session lower on some profit taking after an impressive rally in the last 2 weeks. As it was widely expected as the pair entered into a technical overbought territory the downs die move it was unavoidable. With Trump’s tariffs uncertainty surrounding global equity markets, investors and traders are avoiding entering new positions and waiting for stronger catalysts.
As for this week, traders and investors will mainly focus on China’s response on Trump’s 50% tariffs. From the US Dollar side, Nonfarm payroll will be the biggest catalyst behind any price action. The lack of any high impact economic event in the UK will let the pair trade on US Dollar’s mercy.
On the economic calendar we have on Monday, the US ISM manufacturing PMI to remain unchanged at 48.7 On Wednesday, UK Services PMI to remain unchanged at 50.2 US ADP employment expected to add 120K new jobs, US ISM services PMI pointing higher at 52 On Friday, US Nonfarm payrolls to add 130K new jobs and average hourly earnings pointing higher at 0.3%
Technically the pair’s overall picture is positive after last week’s close above (23.6%) at 1.3455 As for this week, if pair trades on the upside, will test 1.3600 A break and close above 1.3600 will open the road for 1.3700 Alternative, if trades on the downside, will test 1.3358 (23.6%) A break and close below 1.3358 will open the road for 1.3231 Our traders are short between 1.3305 – 1.3533 targeting profits at 1.3226 we are expecting more aggressive short positions on the way up and new long positions starting at 1.3226 (38.2%)
Para conocer con más detalle los acontecimientos del calendario económico, visite nuestro calendario económico en directo en:
https://tentrade.com/economic-calendar/
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