EURUSD Italy’s deficit it looks like is affecting not only Italy but the European union in general. Germany, the EU’s biggest economy also started to show weaker growth and both events mentioned are negative weighted on EURO.

Traders are now focusing on economic calendar releases, especially after ECB warned about the block’s growth. As for this week we must focus on Eurogroup meeting starting on Monday, the European industrial production on Wednesday with expectations negative to -0.3% but at least better than the last -1.7%, and the US consumer price index with expectations lower at 1.6%. On Thursday German gross domestic product expected at 0.1% for the 4th quarter of 2019 but lower at 0.8% on a year basis. European gross domestic expected to remain unchanged at 0.2% and later, on the same day, the US retail sales expected lower at 0.4% with the US producer price index also lower at 2.5%

Technical, 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

Pair is still trading within range and exactly on un upside trend line started on November 2018, a break below the trend line could accelerate losses down to 1.1200 and retest again that strong support.

 

 

GBPUSD traded mixed last week and close marginally lower. After BOE minutes released, pair dropped to new lows as the BOE reduced their growth forecast to 1.2% down from 1.7%. few minutes later a sharp recover took place while BOE’s governor Carney said that interest rates increase are still on the table for this year. Added on that was comments from Mr. Carney that growth could be on truck of recovery if a soft Brexit will be achieved. As PM Theresa May was in Northern Ireland on Friday discussing a solution on Irish boarder back stop, this may bring some positive news for this week including the reopening of the negotiations between the UK and EU. Theresa May and her cabinet will do everything what is need to come back from Brussels with a deal that will win the UK’s parliament majority and avoid a crushing scenario before the end of the Month.

 

On the economic calendar we have on Monday, the UK gross domestic product with expectation pointing lower at 0.2% and manufacturing production at -0.7%. On Wednesday, UK consumer price index expected at 2%. On Friday, retails sales are pointing higher at 3.4%

 

Technically the pair is positive. Buyers took control once again, staring buying the dips at 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/

 

 

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