Week Ahead July 29th – August 2nd
EURUSD pair closed last week’s trading session lower on continuing US Dollar recovery as the US economic indicators showing improvement in US economy versus the deteriorated economic indicators in Europe. Recent sell off in US equity markets pushed investors into safe heave US Dollar boosting demand for the currency. Relatively calm markets conditions during last two weeks’ sessions as investors and traders are bracing for this week’s heavy economic calendar.
As for this week, traders and investors will mainly focus on the FED’s interest rate decision due to be released on Wednesday. The central bank is expected to maintain interest rates unchanged at 5.5%, although, the press conference that will follow it will clear the road for September’s interest rate reduction. CPI numbers from both the EU and US will be the strongest catalyst behind any price action of the pair. Friday’s US Non-Farm payroll will be the top of the heavy weekly economic calendar.
On the economic calendar we have on Tuesday, German Gross domestic pointing lower at 0.1%, European Gross domestic higher at 0.6%, German Harmonized index of consumer prices unchanged at 2.5% On Wednesday, German retail sales expected lower at -0.6%, European Harmonized index of consumer prices expected lower at 2.3%, US ADP employment will show an additional 150K new jobs On Thursday US ISM manufacturing PMI pointing higher at 48.8 On Friday US Average hourly earnings to remain unchanged at 0.3% and Non-farm payroll to show additional 185K new jobs
Technically the picture is neutral after last week’s close below (50%) at 1.0854 In this week’s trading session if pair trades on the upside will re-test 1.0933 If trades on the downside will test 1.0800 (38.2%) Our traders took profit their short positions and now waiting for new levels to enter. We are expecting new short positions at 1.0930 and new long positions at 1.0800
GBPUSD pair closed last week’s trading session lower on mixed economic data from the UK and stronger economic data from the US. The recent selloff in equity markets boosted demand for US Dollar and this added downside pressure on the pair. Traders are also bracing ahead of this week’s BOE meeting pricing-in a possible interest rate reduction or at least another one MP to vote in favor of rate reduction.
As for this week, traders and investors will mainly focus on FED’s and BOE’s interest rate decisions. On Wednesday, FED is expected to maintain interest rates unchanged at 5.5%, although, the press conference that will follow it will clear the road for September’s interest rate reduction. On Thursday, BOE expected to cut interest rates by 0.5%. US CPI and US Non-farm payrolls will be the strongest catalysts behind any price action of the pair.
On the economic calendar we have on Wednesday, the US ADP employment showing an additional 150K new jobs. On Thursday US ISM manufacturing PMI pointing higher at 48.8 On Friday, US Average hourly earnings to remain unchanged at 0.3% and Non-farm payroll to show additional 185K new jobs
Technically the pair’s overall picture is positive after last week’s close above (23.6%) at 1.2864 As for this week, if pair trades on the upside, will re-test 1.3060 Alternative, if trades on the downside, will test 1.2760 (38.2%) Our traders took some profits on their short positions and keeping open some short positions between 1.2800 and 1.2720 targeting profits at 1.2667 we are expecting more aggressive short positions on the way up and new long positions starting at 1.2667
Per un calendario economico più dettagliato, visitate il nostro calendario economico in tempo reale su:
https://tentrade.com/economic-calendar/
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