Week Ahead June 10th – 14th
EURUSD pair closed last week’s trading session lower on ECB’s rate cut and better than expected nonfarm payrolls in the US. ECB as it was widely expected cut rates by 0.25% during their June meeting. Although the cautious comments for any farther rate cuts didn’t forced the pair far lower. Later on, Friday the US nonfarm payroll and Hourly earnings came out better than expectations and this weighted negative on pair closing the week lower.
As for this week, traders and investors will mainly focus on the FOMC rate decision and press conference due to be released on Wednesday. The FED is not expected to cut interest rates at this meeting. The press conference will be highly monitored as the comments may signal a rate cut in their next meeting. If the bank will surprise and move into cutting rates, US dollar will come under pressure and the pair will trade higher. Inflation numbers from the US and Germany will be the biggest catalyst behind next week’s trading session.
On the economic calendar we have on Wednesday, German Harmonized index of consumer prices to remain unchanged at 2.8% and US consumer price index unchanged at 3.4% On Thursday, US producer price index expected lower at 2.3% On Friday, US Michigan consumer sentiment expected higher at 73
Technically the picture is neutral after last week’s close below (50%) at 1.0801 In this week’s trading session if pair trades on the upside will test 1.0864 If trades on the downside will test 1.0764 Our traders took profit their short positions and now sitting on the side waiting for better levels. We are expecting new short positions at 1.0864 targeting profits at 1.0764 and long positions at 1.0764 targeting profits at 1.0864.
GBPUSD pair closed last week’s trading session marginally lower after a failed attempt to break higher. The reversal from multi months higher levels was triggered by the better than expected US nonfarm payrolls and hourly earnings. The pair has been traded on new higher level during last week on the lack of any high impact economic events from the UK.
As for this week, traders and investors will mainly focus on the FOMC rate decision and press conference due to be released on Wednesday. The FED is not expected to cut interest rates at this meeting. The press conference will be highly monitored as the comments may signal a rate cut in their next meeting. If the bank will surprise and move into cutting rates, US dollar will come under pressure and the pair will trade higher. Inflation numbers from the US will be the biggest catalyst behind next week’s trading session.
On the economic calendar we have on Tuesday, the UK ILO unemployment rate expected to remain steady at 4.3% On Wednesday, UK Gross domestic product expected pointing lower at 0%, UK Manufacturing production, lower at -0.2% and US consumer price index unchanged at 3.4% On Thursday, US producer price index expected lower at 2.3% On Friday, UK Consumer inflation expectation pointing at 3% and US Michigan consumer sentiment expected higher at 73.
Technically the pair’s overall picture is positive after last week’s close above (61.8%) at 1.2716 As for this week, if pair trades on the upside, will test 1.2800 Alternative, if trades on the downside, will test 1.2586 (50%) Our traders are standing with short positions at 1.2800 and 1.2720 targeting profits at 1.2600 we are expecting more aggressive short positions on the way up and new long positions below 1.2600
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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