EUR and GBP Under Bears Control (Weekly Review)

2019-09-03
The growth of the EUR against the USD, observed at the end of the week before last, did not get its continuation with the beginning of last week and was again used to open short positions. The resumption of sales was facilitated by a number of factors, including comments by the future president of the European Central Bank, Christine Lagarde, given in the form of written replies to the parliamentary committee of the European Union. There she stated that the central bank did not reach the lower limit of interest rates, and this had a negative impact on the dynamics of the euro.

Later, a member of the ECB Board of Directors, who is also the head of the Dutch Central Bank, Klaas Knot expressed the opinion that the expectations of financial market participants regarding the results of the ECB September meeting were exaggerated, but the euro rebound up again attracted fresh interest in the sale. Thus, the single European currency remains vulnerable to further decline, and at this stage there are still no objective reasons for its purchases.

The position of the GBP also remains vulnerable, which is not surprising, given the real threat of Britain's chaotic exit from the European Union. Attempts to develop the correction were leveled by the initiative of the new British Prime Minister Boris Johnson to block the work of Parliament so that it could not prevent Brexit without a deal. With the beginning of this week, the GBP continues to fall, and the immediate goal of the bears may again be support in the region of 1.2000.

Schedule for this week:

Monday, September 2
08:30 GMT – United Kingdom. Markit Manufacturing Purchasing Managers Index (PMI);
USA, Canada – Labor Day.

Tuesday, September 3
01:30 GMT - Australia. Retail Sales;
04:30 GMT - Australia. Reserve Bank of Australia (RBA) Interest Rate Decision;
04:30 GMT - Australia. Reserve Bank of Australia (RBA) Rate Statement;
07:00 GMT - Eurozone. Speech of Christine Lagarde nominated as the next president of the European Central Bank;
07:00 GMT – United Kingdom. Court Hearings Regarding Prevention of No-Deal Brexit;
08:30 GMT - United Kingdom. Construction Purchasing Managers Index (PMI);
13:30 GMT - Canada. Manufacturing Purchasing Managers Index (PMI);
13:45 GMT - USA. Markit Manufacturing Purchasing Managers Index (PMI);
14:00 GMT - USA. ISM Prices Paid Index;
14:00 GMT - USA. ISM Manufacturing Purchasing Managers Index (PMI).

Wednesday, September 4
01:30 GMT - Japan. BoJ Board Member Kataoka Speaks;
01:30 GMT - Australia. GDP (QoQ) (Q2);
01:30 GMT - Australia. GDP (YoY) (Q2);
01:45 GMT - PRC. Caixin Services Purchasing Managers Index (PMI) (Aug);
08:00 GMT - Eurozone. Markit Composite Manufacturing Purchasing Managers Index (PMI) (Aug);
08:30 GMT - United Kingdom. Markit Services Purchasing Managers Index (PMI) (Aug);
09:00 GMT - Eurozone. Retail sales (YoY) (Jul);
11:00 GMT - Eurozone. ECB’s Lane Speaks;
12:30 GMT - USA. Trade Balance (Jul);
13:45 GMT - USA. Markit Composite Purchasing Managers Index (PMI) (Aug);
14:00 GMT - Canada. Bank of Canada (BOC) Interest Rate Decision;
14:00 GMT - Canada. Bank of Canada (BOC) Monetary Policy Report;
14:00 GMT - Canada. Bank of Canada (BOC) Rate Statement;
15:15 GMT - Canada. Bank of Canada (BOC) Press Conference;
16:30 GMT - USA. Fed’s James Bullard Speaks.

Thursday, September 5
01:30 GMT - Australia. Trade Balance;
07:00 GMT - United Kingdom. Court Hearings Regarding Prevention of No-Deal Brexit;
12:15 GMT - USA. ADP Nonfarm Employment Change;
12:30 GMT - USA. Initial Jobless Claims;
13:45 GMT - USA. Markit Services Purchasing Managers Index (PMI);
14:00 GMT - USA. Factory Orders;
14:00 GMT - USA. ISM Services Purchasing Managers Index (PMI).

Friday, September 6
06:00 GMT - Germany. Factory Orders;
06:00 GMT - Germany. Industrial Production;
09:00 GMT - Eurozone. GDP;
12:30 GMT - USA. Nonfarm Payrolls (Aug);
12:30 GMT - USA. Average Hourly Earnings;
12:30 GMT - USA. Unemployment Rate;
12:30 GMT - USA. Participation Rate;
12:30 GMT - Canada. Unemployment Rate;
12:30 GMT - Canada. Employment Change;
12:30 GMT - Canada. Average Hourly Earnings;
16:30 GMT - USA. Fed’s J. Powell Speaks;
16:30 GMT - Switzerland. Swiss National Bank Chairman Thomas Jordan Speaks.

Author: Anthony Porter, IAFT Analyst

Back


loaded:ok