Week Ahead September 16th – 20th

EURUSD pair closed last week’s trading session unchanged even after ECB cut rates by 0.25%. The rate cut came as surprise to investors and traders as ECB never gave clear indications on rate cut this year.  The mixed economic indicators in the US, added more uncertainty between traders, keeping them guessing what FED will do this Wednesday. US CPI increased last month by 0.3% adding pressure on FED not to cut rates aggressively on this week’s meeting.

As for this week, traders and investors will mainly focus on the FED interest rate decision due to be released on Wednesday. The central bank is expected to cut interest rates by 0.5% Even though the 0.5% rate cut is well anticipated and already priced in, failure to do so, and a lower rate cut of 0.25% will bring the pair sharp on the downside as it will keep traders on hold for the next meeting. The press conference that will follow the rate decision, will guide investors and traders on future FED’s path on monetary policy.

On the economic calendar we have on Tuesday, the US retail sales pointing lower at 0.2% On Wednesday, European core Harmonized index of consumer prices to remain unchanged at 2.8% on Friday, European consumer confidence expected at -13

Technically the picture is positive after last week’s close above (23.6%) at 1.1077 In this week’s trading session if pair trades on the upside will test 1.1200 If trades on the downside will test 1.0970 (38.2%) Our traders are keeping open their short positions starting from 1.0870 to 1.1066 targeting profits at 1.0800 We are expecting more aggressive short positions on the way up and new long positions at 1.0800

GBPUSD pair closed last week’s trading session unchanged as investors and traders are on hold awaiting this week’s FED rate decision. The pair traded within same range as previous week on standby mode ahead of next week’s FED interest rate decision. The mixed economic indicators in the US, added more uncertainty between traders, keeping them guessing what FED will do this Wednesday. US CPI increased last month by 0.3% adding pressure on FED not to cut rates aggressively on this week’s meeting. UK ILO unemployment came online with expectations while UK manufacturing production came out worse than expectations.

As for this week, traders and investors will mainly focus on the FED interest rate decision due to be released on Wednesday. The central bank is expected to cut interest rates by 0.5% Even though the 0.5% rate cut is well anticipated and already priced in, failure to do so, and a lower rate cut of 0.25% will bring the pair sharp on the downside as it will keep traders on hold for the next meeting. The press conference that will follow the rate decision, will guide investors and traders on future FED’s path on monetary policy. BOE interest rate decision is due on Thursday. The central bank is not expected to change interest rates at this meeting. The monetary policy report will guide investors and traders on the next interest rate projections for GBP.

On the economic calendar we have on Tuesday, the US retail sales pointing higher at 0.2% On Wednesday, UK Consumer price index pointing higher at 3.5% On Friday, UK retail sales pointing lower at 0.3%

Technically the pair’s overall picture is positive after last week’s close above (23.6%) at 1.3126 As for this week, if pair trades on the upside, will test 1.3266 Alternative, if trades on the downside, will test 1.3037 (23.6%) Our traders keeping open their short positions starting from 1.2870 to 1.3230 targeting profits at 1.2800 We are expecting more aggressive short positions on the way up and new long positions starting at 1.2900

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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