Last week, the EUR/USD climbed to a two and a half month high and almost reached 1.1400. The pair appreciated as the market expected negative U.S. labour data. The sentiment changed slightly on Thursday, however, as Jobless Claims data showed better than expected figures. Following this, the pair ranged around 1.1200 before the NFP report. The NFP figure, which was predicted to show 228K, mostly met expectations; the result was slightly lower than expected at 223K but the result was still taken as strong. In addition, the U.S Unemployment Rate dropped to its lowest level since 2008 at 5.4%. The question is now whether the data will be solid enough for the Fed to hike rates.
The new week started with a drop as the European Central Bank approaches another week of negotiations with Greece. It is likely that the current deadline will be postponed. On Wednesday, we German and EU GDP will be released together with U.S. Retail Sales data. On Thursday, some European markets (French and German) will be closed for Ascension Day observations. Finally, on Friday, the U.S. Industrial Production change will come out and is expected to increase by 0.1%.
Last Thursday, the GBP/USD sharply climbed as the British elections resulted in victory for the conservative party. Previous surveys had shown that support for the Conservative and Labour parties were equal and this depreciated the British Pound as investors expected a weak government. The pair managed to break through 1.5500 and reached its highest price since February 25th. At the end of the week we saw high volatility connected to the U.S. Non-farm payrolls release but the pair remained high.
We can currently see bearish sentiment due to the decision in China to cut interest rates, which spurred demand for the Dollar. The upcoming week should provide great trading opportunities as many economic events will be released. On Monday, the U.K. Official Bank rate and the MPC Rate Statement will be released. It is widely expected that the current rate will be maintained. On Wednesday, the U.K. Claimant Count Change will be published and will be followed by a press conference with Mark Carney. On the same day, U.S. Retail sales will also be announced.
Last week, Gold traded in a narrow channel between $1,180/ounce and $1,200/ounce. We can see that the market does not want to risk a further dip. Investors first awaited the release of U.S. labour data, however, the price continued to range as no clear signs were provided regarding the interest rate hike. In addition, the U.S stock market strengthened and the S&P index climbed above 2,100 again. Stronger stocks reduce the demand for the safe haven asset.
This week, traders should pay attention to a speech from FOMC member, John Williams. On Wednesday, keep an eye on the U.S. Retail Sales data.
May 11, 2015, Weekly News
EUR/USD
Last week, the EUR/USD climbed to a two and a half month high and almost reached 1.1400. The pair appreciated as the market expected negative U.S. labour data. The sentiment changed slightly on Thursday, however, as Jobless Claims data showed better than expected figures. Following this, the pair ranged around 1.1200 before the NFP report. The NFP figure, which was predicted to show 228K, mostly met expectations; the result was slightly lower than expected at 223K but the result was still taken as strong. In addition, the U.S Unemployment Rate dropped to its lowest level since 2008 at 5.4%. The question is now whether the data will be solid enough for the Fed to hike rates.
The new week started with a drop as the European Central Bank approaches another week of negotiations with Greece. It is likely that the current deadline will be postponed. On Wednesday, we German and EU GDP will be released together with U.S. Retail Sales data. On Thursday, some European markets (French and German) will be closed for Ascension Day observations. Finally, on Friday, the U.S. Industrial Production change will come out and is expected to increase by 0.1%.
GBP/USD
Last Thursday, the GBP/USD sharply climbed as the British elections resulted in victory for the conservative party. Previous surveys had shown that support for the Conservative and Labour parties were equal and this depreciated the British Pound as investors expected a weak government. The pair managed to break through 1.5500 and reached its highest price since February 25th. At the end of the week we saw high volatility connected to the U.S. Non-farm payrolls release but the pair remained high.
We can currently see bearish sentiment due to the decision in China to cut interest rates, which spurred demand for the Dollar. The upcoming week should provide great trading opportunities as many economic events will be released. On Monday, the U.K. Official Bank rate and the MPC Rate Statement will be released. It is widely expected that the current rate will be maintained. On Wednesday, the U.K. Claimant Count Change will be published and will be followed by a press conference with Mark Carney. On the same day, U.S. Retail sales will also be announced.
GOLD
Last week, Gold traded in a narrow channel between $1,180/ounce and $1,200/ounce. We can see that the market does not want to risk a further dip. Investors first awaited the release of U.S. labour data, however, the price continued to range as no clear signs were provided regarding the interest rate hike. In addition, the U.S stock market strengthened and the S&P index climbed above 2,100 again. Stronger stocks reduce the demand for the safe haven asset.
This week, traders should pay attention to a speech from FOMC member, John Williams. On Wednesday, keep an eye on the U.S. Retail Sales data.
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