Week Ahead November 20 – 24

EURUSD pair closed last week’s trading session higher on softer US inflation number and on deteriorated economic releases from the US. As the US CPI number came down to 3.2% market participants offload their USD positions as another interest rate hike is unlikely to happen. US retail sales and unemployment claims came out worse than expectations and this shows that the US economy might be in trouble. The meeting between US president Biden and China’s Xi push investors into equity stocks as the world’s biggest economies found common ground on commerce and defense policies.

As for this week traders and investors will focus on the economic releases from both sides the US and EU, and the FOMC minutes release. During the FOMC minutes we do not expect any surprise change in the FED’s policy. We expect this week’s trading activity to be more on technical levels.

On the economic calendar we have on Tuesday FOMC minutes release. On Wednesday, the US durable goods orders pointing lower at -5.7% and Michigan consumer sentiment at 60.5 On Thursday, German services PMI expected higher at 48.5 and European Services PMI higher at 48 On Friday, German gross domestic product lower at -0.3% and US services PMI lower at 50.4

Technically the picture is positive after last week’s close above (50%) at 1.0913 In this week’s trading session if pair continues on the upside and break and close above (61.8%) could open the road for 1.1300 (100%) If resumes on the downside it will retest 1.0700 (38.2%) Our traders took profit their long positions. We are expecting new buyers at 1.0700 and short sellers at 1.0965

GBPUSD pair closed last week’s trading session higher on softer US inflation number and on deteriorated economic releases from the US. As the US CPI number came down to 3.2% market participants offload their USD positions as another interest rate hike is unlikely to happen. US retail sales and unemployment claims came out worse than expectations and this shows that the US economy might be in trouble. The meeting between US president Biden and China’s Xi push investors into equity stocks as the world’s biggest economies found common ground on commerce and defense policies.

As for this week traders and investors will mostly focus on the economic releases from both sides the US and UK. The speeches from many BOE officials will guide investors and traders on what the central bank is about to do regarding their monetary policy. Last week’s softer CPI from the UK will weigh negative on BOE’s future interest rate decisions and dovish comments are expected during this week’s speeches.

On the economic calendar we have on Tuesday FOMC minutes release. On Wednesday, the US durable goods orders pointing lower at -5.7% and Michigan consumer sentiment at 60.5 On Thursday, UK services PMI expected at 49.5 On Friday, UK Gfk consumer confidence expected at -27 and US services PMI lower at 50.4

Technically the pair’s overall picture is neutral after last week’s break and close above (23.6%) at 1.2462 As for this week, if pair continues on the upside, and break and close above 38.2% will change the picture to positive and open the road for 1.2600 (50%). Alternative, if resumes on the downside, will retest 1.2300 (23.6%) Our traders took profit their long positions and now waiting for better levels. We are expecting new long positions at 1.2300 and short sellers at 1.2700

Pour un calendrier économique plus détaillé, veuillez consulter notre calendrier économique en direct sur : 

https://tentrade.com/economic-calendar/

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