Week Ahead October 7th – 11th

EURUSD pair closed last week’s trading session lower on US Dollar strength and Euro’s decline. The US Dollar gather some strength last week as Non-farm payroll unexpectedly added 254K new jobs with the hourly earnings up at 4%. The better than expected US economic releases boosted demand for US Dollar driving the pair sharp on the downside. European inflation declined at 2.7% adding downside pressure on the pair as investors and traders will start pre-positioning ahead of next ECB interest rate decision, as odds now are favouring another interest rate cut of 0.25%

As for this week, traders and investors will mainly focus on the FOMC minutes due to be released on Wednesday. FED is not expected to cut interest rates at this meeting. Although they may signal a rate cut for the next meeting. The CPI number from the US will be one of the most important catalyst behind next week’s price action.

On the economic calendar we have on Monday, European retail sales pointing higher at 0.2% On Thursday, US Consumer price index lower at 2.3% On Friday, German Harmonized index of consumer prices to remain steady at 1.8% and US Michigan consumer sentiment steady at 70.1

Technically the picture is neutral after last week’s downside move and close just on (38.2%) at 1.0974 In this week’s trading session if pair trades on the upside will test 1.1056 If trades on the downside will test 1.0900 (50%) Our traders took profits most of their short positions and new buyers appear at 1.0970  We are expecting more new short positions on the way up and more aggressive long positions on the way down.

 

 

GBPUSD pair closed last week’s trading session lower on US Dollar strength. The US Dollar gather some strength last week as Non-farm payroll unexpectedly added 254K new jobs with the hourly earnings up at 4%. The better than expected US economic releases boosted demand for US Dollar driving the pair sharp on the downside.

As for this week, traders and investors will mainly focus on the FOMC minutes due to be released on Wednesday. FED is not expected to cut interest rates at this meeting. Although they may signal a rate cut for the next meeting. The CPI number from the US will be one of the most important catalyst behind next week’s price action.  From the GBP side the BOE monetary policy report is due to be released on Thursday. Investors and traders will evaluate the report and gather information whether the central banks will continue to cut interest rates.

On the economic calendar we have on Tuesday, the UK BRC Like-for-Like retail sales pointing at 0.8% On Thursday, US Consumer price index lower at 2.3% On Friday, UK Gross domestic product expected higher at 0.2%, UK Manufacturing production higher at 0.3% and US Michigan consumer sentiment steady at 70.1

Technically the pair’s overall picture is negative after last week’s downside move and close below (38.2%) at 1.3123 As for this week, if pair trades on the upside, will test 1.3252 (23.6%) Alternative, if trades on the downside, will test 1.3058 (50%) Our traders keeping open took profit most of their short positions. New buyers appear at 1.3134 targeting profits at 1.3400 We are expecting more aggressive short positions on the way up and more aggressive long positions on the way down.

 

 

Per un calendario economico più dettagliato, visitate il nostro calendario economico in tempo reale su: 

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

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