Week Ahead August 19th – 23rd
EURUSD pair closed last week’s trading session higher as investors and traders continue to position ahead of September’s interest rate decision. The lower US PPI and CPI encourage traders to sell off US Dollar as they continue to price-in a rate cut on next FED meeting.
As for this week, traders and investors will mainly focus on the FOMC minutes due to be released on Wednesday. The minutes will indicate a clear direction on September’s interest rate decision. The speech from FED’s officials and especially FED’s chairman Powell in Jacksons Hole Symposium will provide additional guidelines to investors and traders on what’s next for the central bank.
On the economic calendar we have on Tuesday, the EU core harmonized index of consumer prices with expectations to remain unchanged at 2.9% On Thursday, German manufacturing PMI is pointing higher at 43.5 European manufacturing PMI higher at 46.1 and US Manufacturing PMI lower at 54.2
Technically the picture is positive after last week’s close above (61.8%) at 1.1027 In this week’s trading session if pair trades on the upside will test 1.1131 (100%) If trades on the downside will test 1.0930 (61.8%) Our traders are 100% net short positions starting from 1.0870 to 1.1000 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 higher on better than expected economic indicators in the UK and continuing selloff of US Dollar. The steady growth in the UK in combination with the lower US PPI and CPI encourage traders to selloff the US Dollar as they continue to price-in a rate cut on next FED meeting.
As for this week, traders and investors will mainly focus on the FOMC minutes due to be released on Wednesday. The minutes will indicate a clear direction on September’s interest rate decision. The speech from BOE governor Bailey and FED’s officials and especially FED’s chairman Powell in Jacksons Hole Symposium will provide additional guidelines to investors and traders on what’s next for both central banks.
On the economic calendar we have on Thursday, UK Manufacturing PMI pointing higher at 52.2 and US Manufacturing PMI lower at 54.2 On Friday, UK Gfk Consumer confidence expected lower at -11
Technically the pair’s overall picture is positive after last week’s close above (23.6%) at 1.2943 As for this week, if pair trades on the upside, will re-test 1.3040 (100%) Alternative, if trades on the downside, will test 1.2867 (23.6%) Our traders took profit all their long positions at 1.2900. New short positions appeared at 1.2860 targeting profits at 1.2700 we are expecting more aggressive short positions on the way up and new long positions at 1.2678 (50%)
For more detailed economic calendar events please visit our live economic calendar on:
https://tentrade.com/economic-calendar/
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