EURUSD pair maintained the bullish bias last week and closed marginally higher even though Fundamentals are against the upside move for this pair. Italy’s dept is so high that the country is on the edge of entering into recession, on the other hand, the fundamentals of USD are even stronger after the surprised 304K of nonfarm payroll.

For this week traders will focus on European producer price index on Monday, with expectations pointing lower at 3.3%, and the US factory orders expected positive at 0.2%. On Tuesday, German Markit service PMI expected unchanged at 53.1 and European Markit service PMI also unchanged at 50.8, US Markit service PMI unchanged at 54.5.

Technically, the picture is neutral. Our traders keeping open their buy positions at 1.1500 (50% Fibonacci), 1.1400 and 1.1352 (23.6% Fibonacci) targeting profits around 1.1565

 

 

GBPUSD closed unchanged last week. The recent rally halted last week due to the European refusal to reopen negotiation with PM Theresa May especially on the backstop for Irish Boarder. Trader’s positive sentiment did not change yet as the European answer was widely expected. In the UK the intra party negotiations continue after last week’s parliamentary voting defeat on Brexit “plan B”.

For the coming week we have on Monday, the UK construction PMI with expectations pointing lower at 52.6. On Tuesday, Markit service PMI expected lower at 50.8. On Thursday, the first BOE meeting for 2019 will take place, even though is not expected any change in policy, the speech that will follow from BOE’s Carney will give some future guidance on how the BOE will act in case a disorder exit from the European union will happen.

 

Technically the pair is positive. We are expecting new buyers to take control around 1.3027 (23.6% Fibonacci) and 1.2922 (38.2% Fibonacci) targeting profits at 1.3200

 

For more detail economic calendar events please visit our live economic calendar on: 

https://10tradefx.com/economic-calendar/

 

*The material does not contain an offer of, or solicitation for, a transaction in any financial instruments. 10TradeFX accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all your invested capital, so please make sure that you fully understand the risks involved.