EURUSD As we had previously mentioned, slowing European economic growth is heavily weighted on this pair, and continues the downside move for another week registering new multi months lows. Apart from the deteriorated economic events, a new negative fundamental is added on board. The early Spanish elections due on April 28th are adding more worries in the Eurozone’s populism rise and the Eurosceptic parties adding more negative pressure on the pair. Last week’s disappointing PMI numbers forced traders to increase their short positions ahead of next ECB meeting, that is expected to be dovish.
For this week’s economic calendar, we have on Tuesday, the German ZEW economic sentiment with expectations lower at -18.4. On Wednesday, German PPI is expected to be lower at -0.2% later during the day, FOMC minutes will be released without any changes on sight. On Thursday the German harmonized index of consumer prices is expected unchanged at 1.7%, German Manufacturing PMI higher at 4939, European Markit PMI higher at 51.1, the US Durable goods expected higher at 1.7% although from our point of view we are expecting it extremely low as it was affected from the 2 moths government closure, when 2% of the population remain unpaid for an extended period. On Friday, German gross domestic product is expected unchanged at 0.6% and European consumer price index unchanged at 1.4%
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 at around 1.1565
The pair is still trading within range, the break below the trend line could soon retest the strong support of 1.1200 where we are expecting aggressive buying orders.
GBPUSD traded mixed last week and closed marginally lower. Another defeat voting on PM Theresa May’s of non-binding amendments took place last Thursday. Although traders and investors are remaining positive with expectations showing to a soft Brexit or at least an extension to withdrawal dead line. After the latest defeat on May’s proposals, now is time for the parliament to undertake the process. Possibilities of defeating a no deal and extended the withdrawal time are increasingly high and this gives to the pair fresh breath and upside move potentials.
On the economic calendar we have only on Tuesday, ILO unemployment with expectations pointing lower at 3.9% and average earning.
Technically the pair is positive. Traders maintaining their long positions at 1.3027 (23.6% Fibonacci) and 1.2922 (38.2% Fibonacci) and continue buying into the dips at 1.2838 (50% Fibonacci) targeting profits at 1.3200
For more detail economic calendar events please visit our live economic calendar on:
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