EURUSD Closed the week lower amid ECB’s official’s statements highlighting that economy needs to be supported and willing to inject as much money as needed in order to achieve market stability. Last week’s FED’s rate cut by of 0.25% did not add significant downside pressure on the pair as it was wide expected and priced in. As for the coming week, markets will be focused on the last-minute news that came out on Friday before the closing bell. Chinese officials canceled their visit in the US where it was almost a sure trade deal between the 2 countries was going to be achieved. US president Trump did not take a moment and answered back mentioning that he is not in a rush for a trade deal before the 2020 election. The new pushed equities sharp on the downside and Gold prices on the upside. As for the coming week the news might be pending to be priced in US dollar. We are expecting volatility to pick-up in the coming week as we have a heavy economic calendar ahead and many central bank officials’ speeches.
In this week’s economic calendar, we have on Monday, German Markit Manufacturing PMI pointing higher at 44 and European PMI composite unchanged at 51.9 in the US Markit service PMI expected higher at 51.5. On Tuesday, German IFO business climate expected higher at 94.5 On Thursday, US gross domestic product expected to remain unchanged at 2% and core personal consumption expenditure unchanged at 1.7%. On Friday US durable goods order are pointing lower by -3.1%
Technically, the picture is neutral. Pair retreated lower but continue trading within the trend channel. The new support at 1.0955 is in focus this week. A break below 1,0955 will open the road to 1.0800. Alternatively, a reject of the support once again will keep the pair in range formed the last 2 weeks. New buyers came in at 1.1014 targeting profits at 1.1320 with stop losses at 1.0900. We are expecting more aggressive buy positions to be opened at 1.0955 with stop losses at 1.0900
GBPUSD closed the week marginally lower amid pending high court decision on parliament suspension. Decision is due to be release this week after 3 days of ruling in high court. BOE maintained its policy unchanged at this meeting as it was widely expected. Investors had nothing to figure out from the minutes released and this kept the pair steady. As for Brexit news, positive signs are coming from both sides especially after EU commission president Jean-Claude Juncker expressed his optimism that a deal could be reached before October 31st. On the other hand, Irish foreign minister declared that there is still a wide gap between UK and EU on sticking a deal. This week all eyes will be on the high court decision and on any news coming out from both sides.
On this week’s light economic calendar, we have only on Tuesday, Public sector net borrowing pointing higher at 6.650 billion GBP.
Technically the pair is neutral to positive. Traders expecting a continuation on the upside. Our traders hold open their buy positions at 1.2200 and 1.2000 targeting profits at 1.2800 and triggering trailing stop at 1.2450. If positions will take profit at 1.2450 we are expecting new buyers to come in at 1.2400 and 1.2300.
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