Week Ahead September 2nd – 6th

EURUSD pair closed last week’s trading session lower on US Dollar upbeat demand. The US Dollar recovered lost ground from last 2 weeks selloff as investors and traders are weighing the outcome from Jackson Hole symposium. FED’s officials and FED’s Chairman Powell signaled a Dovish and cautious interest rate cut in September. Their cautious comments boosted demand for US Dollar as a 25-point rate cut will be seen as dovish rate cut and is already priced-in the better than expected economic releases in the US and the disappointing economic releases in Europe was another factor behind last week’s drop in the pair.

As for this week, traders and investors will mainly focus on the US non-farm payrolls. As one of gauges that FED is looking at before their September interest rate decision, the Non-farm payroll will play a major role on whether the pair will continue on the downside or resume the upside.

On the economic calendar we have on Tuesday, the US ISM manufacturing PMI pointing higher at 47.8  On Thursday, European Retail sales expected higher at 0.1%, US ADP employment higher by 155K new jobs and US ISM services PMI higher at 51.5 On Friday, European Gross domestic product to remain unchanged at 0.6% US non-farm payroll to add 163K new jobs and hourly earnings higher at 0.3%

Technically the picture is neutral after last week’s close below (23.6%) at 1.1047 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 took some profits off their short positions and  keeping open their short positions starting from 1.0870 to 1.1006 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 lower on US Dollar upbeat demand. The US Dollar recovered lost ground from last 2 weeks selloff as investors and traders are weighing the outcome from Jackson Hole symposium. FED’s officials and FED’s Chairman Powell signaled a Dovish and cautious interest rate cut in September. Their cautious comments boosted demand for US Dollar, as a 25-point rate cut, will be seen as dovish rate cut and is already priced-in the lack of any economic releases in the UK and the better than expected economic releases int US added downside pressure on the pair.

As for this week, traders and investors will mainly focus on the US non-farm payrolls. As one of gauges that FED is looking at before their September interest rate decision, the Non-farm payroll will play a major role on whether the pair will continue on the downside or resume the upside. The lack on any economic releases in the UK will keep the pair in the mercy of US Dollar.

On the economic calendar we have on Tuesday, the UK BRC like-for-like retail sales pointing at 0.03%, the US ISM manufacturing PMI pointing higher at 47.8  On Thursday, US ADP employment expected higher by 155K new jobs and US ISM services PMI higher at 51.5 On Friday, US non-farm payroll to add 163K new jobs and hourly earnings higher 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

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

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

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