EUR/USD

This week is heavily loaded with many important economic events. Although one of them can generate volatility and direct the future rate of EURUSD pair, Wednesday’s FOMC. Even though the expectations are for no change in interest rate at this meeting, a hawkish statement by FED’s Powell can push the dollar higher as this could increase the probabilities for 4 interest rate hikes during 2018. Let’s have a look now on what to expect for this week. Starting from Monday, German Harmonized index of consumer prices expected to remain unchanged at 2.1%. On Tuesday German retails sales expected higher at 1% up from the latest -2.1%, French Consumer price index also pointing higher at 2.4% up from last 2.3%, Europe’s Gross domestic product down to 2.4% from last 2.5% and Europe’s Consumer price index stable at 2%. In the US core personal consumption expenditure is expected lower at 1.9% down from last 2%. On Wednesday German Markit manufacturing PMI is expected to be unchanged at 57.3 and Europe’s Markit manufacturing PMI also unchanged at 55.1 The US ADP employment expected lower at 175K down from last 177K, later as we mention above the FED will release the monetary policy statement. On Friday US nonfarm payrolls are expected to show 195k new jobs added in July, while, the average Hourly earnings remain unchanged at 2.7%

 

Technical EURUSD is neutral to positive. Range trading persist. Our Traders maintain open buy positions at 1.1734 targeting 1.1853 to take profit. And place new pending orders buy at 1.1610 with take profit at 1.1853 trailing stop above 1.1722

 

 

 

GBP/USD

 

Another weak week for GBP and this was mainly due to a disappointing inflation number of 2.4% just below the BOE expectations. Even though PM Theresa May took a leading position in Brexit negotiations this did not motivate GBP investors and traders to jump into the game and this kept GBP trading within last week’s rate. This week we are expecting much more to happen in this pair as a rate hike of 0.25% can take place on Thursday when BOE will release its monetary policy. In others, On Monday UK Gfk consumer confidence expected unchanged at -9. On Wednesday UK Markit manufacturing PMI expected at 54.2 down from last 54.4.

 

Technical the pair is neutral. A new uptrend formation started on July 18 could change the picture to positive. Therefore, traders maintain open positions buy at 1.3365 targeting profits at 1.3471 and position buy at 1.3223 take profit at 1.3471 with trailing stop above 1.3310

 

 

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