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#1 12-10-2020 14:47:23

johnedward
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From: Paris - France
Registered: 21-12-2009
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EUR/USD: Will we see a slower week of trading this week?

EUR/USD: Will we see a slower week of trading this week?


This week began with a public holiday - Columbus Day in the United States and the Spanish National Day.

Also, if you consider the current period of the trading month (i.e. the middle of the month), there is a good chance that the price action of Monday will also extend to the other days of the trading week.

Economic data reports to watch this week

The governor of the Bank of England spoke on Monday at an open forum of the Citizen's Panel organised by the Bank of England. The pound sterling is likely to be the star for the entire week - in terms of liquidity - as Brexit talks enter the home stretch.

The change in the number of claimants in the UK and the US CPI (consumer price index) will dictate price action on Tuesday. However, don't expect much movement on the GBP/USD due to the two economic releases as the market is focused on the most important events - Brexit and the US presidential elections.

On Wednesday, the US Core PPI completes the inflationary picture. Now, traders already have an idea of the evolution of consumer prices, and this information complements the inflation analysis.

Australian employment on Thursday and U.S. core retail sales on Friday complete a week that should bring more ranges. As mentioned earlier, the focus is on the overall situation, and any positioning this week will keep in mind the major events for the rest of the trading year.

There are 3 events that are likely to move the markets in the months leading up to the end of the year. First, the U.S. elections. The race is tight again, with Republicans and Democrats hoping to win the White House and Congress. Depending on the winner, the USD should react in the short to medium term.

Secondly, the Brexit is still on the agenda and the volatility of sterling increases every time there is something new on the market. Here, the GBP/USD level of 1.30 should act as a pivotal price level for the future.

Finally, the ECB is expected to ease further this year. We do not yet know the size of the ECB bazooka, but judging by market expectations it should be large enough to weigh on the leading EUR/USD.

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