Week Ahead December 2nd – 6th
EURUSD pair closed last week’s trading session higher on US PCE and European CPI. Both numbers came out on line with expectations and in combination of light trading session due to US thanksgiving holidays, the pair took the chance to recover some lost ground from last week’s downside move. FOMC minutes also sounded somehow dovish by adopting a more gradual stance as FED’s Powell reaffirm that there is no rush to cut interest rates.
As for this week, traders and investors will mainly focus on the US employment figures, with the main one, Friday’s Nonfarm payrolls. FED and ECB officials including ECB’s president Lagarde, are due to speak during the week and their stance on monetary policy could trigger some volatility on the pair.
On the economic calendar we have on Monday, the US ISM manufacturing PMI pointing higher at 47.5 On Wednesday, US ADP employment expected to add 165K new jobs and US ISM services PMI expected lower at 55.5 On Thursday, European retail sales expected lower at -0.3% On Friday, European gross domestic product to remain unchanged at 0.9%, US non-farm payrolls to add 183K, Average hourly earnings lower at 0.3% and US Michigan consumer sentiment pointing higher at 72.9
Technically the picture is negative after last week’s close below (100%) at 1.0575 In this week’s trading session if pair trades on the upside will test a break out of 1.0596 (100%) with possibility to 1.0675 If trades on the downside will test 1.0500 as first stage before breaks lower to 1.0400. 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. As we previously mentioned, the pair retreated higher after it has entered oversold territory. The 100% technical level is now crucial for the pair to recover farther.
GBPUSD pair closed last week’s trading session higher on US PCE release as it came out on line with expectations. The light trading session due to US thanksgiving holidays, gave to the pair the chance to recover some lost ground from last week’s downside move. FOMC minutes also sounded somehow dovish by adopting a more gradual stance as FED’s Powell reaffirm that there is no rush to cut interest rates.
As for this week, traders and investors will mainly focus on the US employment figures, with the main one, Friday’s Nonfarm payrolls. FED officials are due to speak during the week and their stance on monetary policy could trigger some volatility on the pair. The pair will be in the mercy of it counterparty US Dollar on the lack of any scheduled economic events in the UK.
On the economic calendar we have on Monday, the US ISM manufacturing PMI pointing higher at 47.5 On Tuesday, UK BRC retail sales expected higher at 0.7%. On Wednesday, US ADP employment expected to add 165K new jobs and US ISM services PMI expected lower at 55.5 On Friday, US non-farm payrolls to add 183K, Average hourly earnings lower at 0.3% and US Michigan consumer sentiment pointing higher at 72.9
Technically the pair’s overall picture is negative even after last week’s close above 100% at 1.2734 As for this week, if pair trades on the upside, will test 1.2970 (61.8%) Alternative, if trades on the downside, will test 1.2675 (100%). 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.
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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