Week Ahead April 29th – May 3rd
EURUSD pair closed last week’s trading session higher on US dollar softer demand. The pair manage to trade higher during the week as flows are returning into equity markets and disappointing US GDP. On Friday US dollar gather some strength and erase some of it losses as the PCE came in higher than expectation, giving a new signal in markets that interest rates may stay higher for longer, erasing any FED’s possibilities for rate cut in the next meetings.
As for this week, traders and investors will mainly focus on Wednesday’s FOMC. The central bank is not expected to change interest rates at this meeting. The press conference and the minutes to be released will defy the pair’s next move. Non-farm payrolls are due to be released on Friday with expectation of 210K new jobs From European side all eyes will be at the German and European CPI numbers.
On the economic calendar we have on Monday, the German CPI to remain unchanged at 2.3% On Tuesday, German retail sales expected at -2.7%, European Gross domestic product higher at 0.2%, European Harmonized index of consumer prices to remain unchanged at 2.4% On Wednesday, US ADP employment expected to show 180K new jobs, US ISM manufacturing PMI expected at 50. On Friday, the US Nonfarm payroll to show an additional 210K new jobs and Average hourly earnings stable at 0.3%
Technically the picture is negative after last week’s close just above (23.6%) at 1.0694 In this week’s trading session if pair trades on the downside will test 1.0600 If trades on the upside will retest 1.0766 Our traders standing firm with long positions between 1.0863 and 1.0640 targeting profits at 1.0900 We are expecting more aggressive long positions on the way down and new short positions above 1.0900
GBPUSD pair closed last week’s trading session higher on softer US demand due to renew flows of US Dollars into equity markets. The worse than expected US gross domestic and better than expected UK services PMI were the stronger catalyst behind pairs rally.
As for this week, traders and investors will mainly focus on Wednesday’s FOMC. The central bank is not expected to change interest rates at this meeting. The press conference and the minutes to be released will defy the pair’s next move. Non-farm payrolls are due to be released on Friday with expectation of 210K new jobs From UK side there are no economic releases during the week, so the pair will remain at the mercy of it counterpart US Dollar.
On the economic calendar we have on Wednesday, US ADP employment with expectation to show 180K new jobs, US ISM manufacturing PMI expected at 50. On Friday, the US Nonfarm payroll to show an additional 210K new jobs and Average hourly earnings stable at 0.3%
Technically the pair’s overall picture is neutral after last week’s close above (38.2%) at 1.2490 As for this week, if pair trades on the upside, will test 1.2566 (50%) Alternative, if trades on the downside, will test 1.2300 (23.6%) Our traders are long between 1.2566 and 1.2300 targeting profits above 1.2800 We are expecting more aggressive long positions on the way down and new short sellers above 1.2700 targeting profits at 1.2600
For more detailed economic calendar events please visit our live economic calendar on:
https://tentrade.com/economic-calendar/
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