Week Ahead January 20th – 24th
EURUSD pair closed last week’s trading session slightly higher after moderate gains against US Dollar. At the beginning of the week the pair slight once again on multi years lower level after started to recover some lost ground. The political turmoil in Europe’s largest economy, Germany, is weighted negative on Euro. US CPI came out lower than expectation, although it was not enough to fuel expectations of any interest rate cut in the near future. European CPI came out in line with expectations without creating any significant price action.
As for this week, traders and investors will mainly focus on the Trump’s first week in the office. As of Monday, US elected president Trump is taking over and traders and investors will need to closely following his trade and tariff war with Europe and China. The speech from ECB’s president Lagarde will be giving some clues on central bank’s future policy.
On the economic calendar we have on Friday, the European Services PMI pointing lower at 50.6 European manufacturing PMI higher at 47.1 US Services PMI expected at 56.8 and US Manufacturing PMI at 49.4
Technically the picture is negative after last week’s close below (23.6%) at 1.0270 In this week’s trading session if pair trades on the upside will test 1.0348 (23.6%) A break out and close above 1,0270 will open the road for 1.0470 If trades on the downside will test 1.0180 A break and close below 1.0180 will add downside pressure and test 1.0080 Our traders are net long with positions between 1.0767 – 1.0238 targeting profits above 1.1000 We are expecting new short positions above 1.0913 and more aggressive long positions on the way down.
GBPUSD pair closed last week’s trading session lower on UK’s lower than expected CPI number. The 3.2% CPI released added odds for an interest rate cut on the next BOE meeting. As for the US CPI release number came out in line with expectation at 2.9% waiving any interest rate cut expectations from FED. The divergence between the two central banks expectation pushed the pair lower on levels seen back in 2023.
As for this week, traders and investors will mainly focus on the Trump’s first week in the office. As of Monday, US elected president Trump is taking over and traders and investors will need to closely following his trade and tariff war with Europe and China.
On the economic calendar we have on Tuesday, the UK ILO Unemployment rate pointing higher at 4.4% On Friday UK Services PMI pointing lower at 50.6, UK Manufacturing PMI higher at 47.1 US Services PMI expected at 56.8 and US Manufacturing PMI at 49.4
Technically the pair’s overall picture is negative after last week’s lower close on at 1.2165 As for this week, if pair trades on the upside, will test 1.2320 (23.6%) A break and close above 1.2165 will open the road for 1.2453 Alternative, if trades on the downside, will test 1.2100 A break and close below 1.2100 will open the road for 1.2000 Our traders are net long between 1.3038 and 1.2215 targeting profits above 1.3038 We are expecting new short positions above 1.2700 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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