Monday, 3 July 2017

Currency Pairs To Keep An Eye On This Week

Posted by Anonymous at 12:39 Labels:

A new week has begun and if you’re just waking up, then you better start reading this piece as we’re going to tell you exactly at which instruments you should be looking into this week, according to the different economic events scheduled for the coming days.

Monday

Favourite pair: GBP/USD

Economic event: Manufacturing PMI (UK) + ISM manufacturing PMI (US)

Note: Attention on Monday will be directed almost entirely to Europe. Markit Economics is set to release manufacturing PMIs for Germany, the Eurozone and the United Kingdom by morning hours. However, all eyes will be looking at Bank of England Governor Mark Carney, who is set to speak as of 12:00 GMT at the Financial Stability Board. Traders will be pending on hints for further monetary policy changes, particularly interest rates hikes. A hawkish rhetoric will support the pair and provide sufficient support to reach a new resistance.

Wednesday

Favourite pair: EUR/USD

Economic event: Retail Sales (EU) + FOMC Minutes (US)

Note: Midweek will likely be defined by movements in the euro/dollar parity. A huge inflow of volatility is likely to be registered on Wednesday as US traders come back after Tuesday’s holiday (Independence Day) and the Federal Reserve releases meeting minutes for its June monetary policy encounter. Investors will be searching for hints on the timing for the next Fed rate hike. Last month, Fed Chair Janet Yellen said a third hike was still part of the plan. According to CME Group’s FedWatch tool, chances for a December move are priced at 50.9 percent. Eurozone retail sales will also be under heavy scrutiny as ECB President Mario Draghi has recently changed to a more hawkish rhetoric on monetary policy normalization. Economic data supporting the idea of a stronger economy will contribute to that same line of thought.

Friday

Favourite pair: GBP/USD + EUR/USD

Economic event: Industrial Production (Ger) Manufacturing Production (UK) + NFP (US)

Note: The pound/dollar will be affected by some extra movements in early hours on Friday, as the UK presents a batch of key economic data, including manufacturing production for May. Nevertheless, main focus will be at the employment report in the United States, especially at the nonfarm payrolls and unemployment rate. Labor market conditions are one of Fed’s key metrics monitored when deciding on further monetary accommodation policies. Therefore, if data outperforms expectations, we could see a rally on the dollar and higher rate hike probabilities.

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