EUR/USD

Last week’s economic calendar did not offer many clues for traders. EURUSD pair continue to trade around the 1.17 level. As US president Trump, continues his tour in Europe starting from Brussel NATO meeting, Germany meeting with Angela Merkel, UK meeting with PM Theresa May, and during the weekend in Scotland, markets and traders are looking for any new declaration that could negatively affect the relations between the US and Europe. This week the Euro will have a light economic calendar to follow. Although its counterparty, the US Dollar, is loaded with many economic news and FED official’s speeches. Starting from Monday early hours, Chinese Gross Domestic is expected Higher, even though the event is in China it could have an impact on European and US Markets that are directly affecting the exchange rate of EURUSD. Later on Monday, we have the US retail sales and expectations which are pointing at 0.4%, which is much lower than previous 0.9%. On Tuesday and Wednesday, FED’s Powell speech is expecting to bring some volatility and clues about the FED’s future path on interest rates. On the same day the only one and most important release for EURO is the European Consumer Price Index –Core, expectations are pointing to 1% meaning that inflation does not show any change from last year and this will push ECB back from normalizing interest rates.

Technical EURUSD is neutral to positive. As last week formation of higher lows, are well protecting and keeping away support of 1.1500 this giving us a more positive view. Traders maintain open buy positions at 1.1734 targeting 1.1853 to take profit. And, position at 1.1610 with take profit at 1.1853 trailing stop above 1.1722

 

 GBP/USD

Last week, same as previous week, was a quite week for GBP. MPs did not manage to push GBP on either direction. For this week we have on Tuesday, the UK average earnings and expectations are unchanged at 2.5% and ILO unemployment rate also unchanged at 4.2%. On Wednesday, consumer price index is pointing higher at 2.6% up from last 2.4%. Retail price index is expected higher at 3.5% up from last 3.3%. On Thursday, Retail sales are expected lower at 3.8% down from last 3.9%.  If the first three numbers above will come positive it is all that is need for GBP to tick higher and continue trading higher until August BOE meeting and beyond.

 

Technical the pair is neutral. Therefore, traders maintain open positions buy at 1.3365 take profit at 1.3471 and position buy at 1.3223 take profit at 1.3471 with trailing stop above 1.3310

 

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