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EUR/USD: Will The 1.10-Barrier Withstand The Upward Pressure?

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Dear Traders,

While U.S. nonfarm payrolls have surged to 292K jobs in December, beating all estimates, Friday’s dollar rally did not last long. The spoilsport was slower wage growth, which disappointed the market’s expectations and increased less than 2.7 percent.  The EUR/USD experienced a sharp dip towards 1.08 at the time when payrolls were released but the pair was able to quickly recover all losses. As noted in previous analysis, the 1.10-1.1050 area remains to be a key resistance zone. As long as the currency pair trades below that area, we will favor a bearish stance, targeting lower price levels at 1.0810 and 1.0720.

The British Pound fell to a five-year low against the dollar, dipping slightly below the 1.45-mark. A reason for GBP’s current weakness is a more pessimistic outlook for a first rate increase by the Bank of England. In the light of the current financial turmoil in China the BoE’s policy stance could be more dovish, waiting with a liftoff until well into 2017. In addition, the uncertainty surrounding the U.K.’s possible exit from the European Union threatens to weigh on the economy, which is why the BoE is expected to keep policy unchanged for a considerable time. The central bank will announce its latest monetary policy decision on Thursday. Aside from the BoE interest rate decision, Industrial and Manufacturing Production numbers, scheduled for release on Tuesday could be interesting to watch.

The most important piece of U.S. data will be Retail Sales, due for release on Friday. Furthermore, we will have some speeches of Federal Reserve officials throughout this week, which may impact on the dollar.

There are no major economic reports from the eurozone this week but the eurogroup meeting towards the end of the week could reveal interesting information for euro traders.

Let’s wait and see. We wish you a good start to this week and successful trading.

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EUR/USD lacks direction

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Dear Traders,

Our problem child EUR/USD has been very costly to traders since it lacks direction on Greek risk. The euro’s intraday moves seemed indifferent to the Greek debt talks and provided almost no profitable chances for daytraders. The euro is rather moving sideways, lagging behind profitable trading days. We still need to be patient and wait for greater moves once Grexit finally gets pushed off the table.

Greek saga holds the euro in chains

Yesterday was just another day of negotiations which ended without a deal with no breakthrough in sight. Wednesday’s meeting of euro-zone finance ministers in Brussels broke up in the early morning. Ministers will resume at 1 p.m. local time today. Everyone is hoping now that the current Greek saga comes to a conclusion.

 

 

The British Pound declined against the U.S. dollar, marking a next support at around 1.5665. With no major U.K. economic news releases this week, the price action will mainly hinge on the appetite for U.S. dollars.

U.S. Economic data (second tier reports) and Grexit event risk in focus:

11:00 EUR Eurogroup Finance Minsters Meeting

12:30 USA Continuing & Initial Jobless Claims

13:45 USA Services PMI

(timezone GMT)

Daily forex signals:

 

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2015 Maimar-FX.

www.maimar.co

 

 

EU Emergency Summit: Tough Monday?

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Dear Traders,

Last Friday turned out to be a quite uneventful trading day with both major pairs initially tending downwards but ending the day unchanged against the U.S. dollar.

The euro was supported by 1.13 ahead of today’s EU emergency summit in Brussels. The market is still expecting that in the eleventh hour an agreement between Greece and its creditors will be reached. The euro therefore trades on hopes and optimism about a defining solution. However, we should not underestimate the risk if Greece fails to pay the IMF the 1.5 billion euros which is due on June 30. The outcome of the Greek debt talks will determine how the euro trades the next days. The emergency summit starts at 12:30 local time in Brussels. If no agreement is made today, the next key event risk is the special summit planned for June 25-26.

Asides from Greek debt negotiations, there is a number of U.S. economic reports this week. The most important piece of data will be Durable Goods orders (Tuesday) and the revision to Q1 GDP (Wednesday).

The British Pound knows only one direction: Upwards. The GBP/USD rallied now 10 days without any major pullback. A next resistance is at 1.60 and further 1.6150. Below 1.5835 sterling may correct its recent gains down to 1.5750. There are no major U.K. economic reports scheduled for release this week so traders should focus on the demand for U.S. dollars.

Economic data today:

10:30 EUR Eurogroup Emergency Summit

14:00 USA Existing Home Sales

We wish you a good start to the week and many profitable trades.

 

 

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2015 Maimar-FX.

www.maimar.co