June 9th – 13th
EURUSD pair closed last week’s trading session higher despite ECB’s rate cut of 0.25%. The central bank reduced interest rates by 0.25% as it was widely expected, although, the minutes that followed the interest rate decision and press conference, indicated that this was the end of ECB’s interest rate policy. The decision was taken hawkish by the markets and boosted demand for Euro. The lower European CPI was another factor behind Euro’s strong hold last week. From the US, the strong nonfarm payroll failed to boost demand for US Dollar as the trade war and Trump’s tariffs are still weighting negative on the US Dollar.
As for this week, traders and investors will mainly focus on the economic calendar. The two main catalyst behind this week’s trading session will be the US CPI and German CPI. There are no scheduled high impact events for the week, although traders and investors will need to pay attention on the US – Chinese deteriorated relation, not only trade war related but also on the geopolitical tensions surrounding Taiwan.
On the economic calendar we have on Wednesday, the US CPI pointing higher at 0.3% On Thursday, US producer price index expected lower at 3% On Friday, German harmonized index of consumer prices to remain steady at 2.1% and Michigan consumer sentiment expected higher at 53.5
Technically the picture is positive after last week’s close above (23.6%) at 1.1390 In this week’s trading session if pair trades on the upside will test 1.1474 A break out and close above 1,1474 will open the road for 1.1577 If trades on the downside will test 1.1269 (38.2%) A break and close below 1.1269 will add downside pressure and test 1.1029 Our traders are standing with short positions starting between 1.1263 and 1.1479 targeting profits at 1.1134 we are expecting more aggressive short positions on the way up and new long positions at 1.1139
GBPUSD pair closed last week’s trading session higher on US Dollar weakness due to Trump’s trade war with China and geopolitical tensions between US and China on Taiwan. The stronger US non-farm payroll on Friday helped the US dollar to gather some strength and recover some lost ground from last week’s trading session.
As for this week, traders and investors will mainly focus on the economic calendar. The two main catalyst behind this week’s trading session will be the US CPI and UK ILO employment. There are no scheduled high impact events for the week, although traders and investors will need to pay attention on the US – Chinese deteriorated relation, not only trade war related but also on the geopolitical tensions surrounding Taiwan.
On the economic calendar we have on Tuesday, the UK ILO employment pointing higher at 4.6% On Wednesday, the US CPI pointing higher at 0.3% On Thursday, UK gross domestic product expected lower at -0.1%, UK Manufacturing PMI lower at -0.8% and US producer price index expected lower at 3% On Friday, Michigan consumer sentiment expected higher at 53.5
Technically the pair’s overall picture is positive after last week’s close above (23.6%) at 1.3523 As for this week, if pair trades on the upside, will test 1.3600 A break and close above 1.3600 will open the road for 1.3700 Alternative, if trades on the downside, will test 1.3400 (23.6%) A break and close below 1.3400 will open the road for 1.3270 Our traders are short between 1.3305 – 1.3600 targeting profits at 1.3270 we are expecting more aggressive short positions on the way up and new long positions starting at 1.3270 (38.2%)
For more detailed economic calendar events please visit our live economic calendar on:
https://tentrade.com/economic-calendar/
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