U.S. Retail Sales And Fed Speak To Shape Rate Hike Expectations
MaiMarFX | Sep 12, 2016 06:28AM ET
We welcome you to a new trading week which could be quite interesting in terms of fresh economic data from the U.S. in the run-up to the Federal Reserve meeting on Sept 20-21. Chances of the Fed raising interest rates at the September meeting recently climbed to 38 percent and market participants will be looking for Fed officials to offer final hints before the pre-meeting blackout period.
Today, Fed's Lael Brainard and Dennis Lockhart provide a last chance to monitor their remarks for clues about the likelihood of an increase later this month. Moreover, U.S. Retail Sales, scheduled for release on Thursday, will be the biggest report of the week and will shape the market's expectations for a Fed rate hike.
On the same day, the Bank of England will decide on monetary policy but the central bank is expected to hold interest rates steady this month. Furthermore, we have Consumer Price reports from the U.K. and U.S. scheduled for release this week and any major surprises should have a significant impact on the currencies.
EUR/USD
The euro formatted a slight downward trend within an overall sideways trend. Based on the recent downward channel we see a current resistance at around 1.13, whereas the 1.11-level could act as a support for the euro. Below 1.1050, however, we expect bearish momentum to accelerate.
GBP/USD
The cable declined towards 1.3230 as the U.S. dollar gained some strength. The pair may head for a test of 1.32 before it is vulnerable to a correction. However, below 1.3160 we expect further losses towards 1.31. On the topside, we wait for a break above 1.3375 in order to reinforce a bullish stance.
Here are our daily signal alerts:
EUR/USD
Long @ 1.1260 SL 25 TP 20, 40
Short @ 1.1217 SL 25 TP 30-35
GBP/USD
Long @ 1.3290 SL 25 TP 25, 40
Short @ 1.3235 SL 25 TP 20, 40
We wish you good trades and many pips!
Disclaimer: Any and all liability of the author is excluded.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.