EUR and GBP Failed to Continue Growth (Weekly Review)

2020-09-08
Last week the situation on the foreign exchange market remained generally unchanged. The main competitors of the USD, in particular the EUR, the GBP, and the CHF, opened the week with growth against the USD, but, having encountered strong resistance, they began to decline. As a result, they were partially confused by previous gains. Consequently, these currencies returned to supports, where their further destiny is being decided.

Having lost support in the area of ​​the 18th figure, the EUR will continue to decline, where the nearest target of the bears may be the support at 1.1720 / 00. In anticipation of the European Central Bank meeting, which will be held this week, the EUR may remain under pressure, which may also be facilitated by an increase in the coronavirus cases in Spain and weak Eurozone statistics. Yet one cannot be 100% sure that if the 18th figure is lost, the 17th will be lost as well.

In the absence of progress in negotiations between London and Brussels on the terms of Brexit, the GBP, despite its growth against the USD, will remain in a vulnerable position. Here, the probable target of the bears may be the psychological level 1.3000. On the way to it, the bulls may try to regain control of the situation, but the GBP/USD will either continue to decline, or enter a consolidation phase and get stuck in a range. Without positive news on Brexit, a return to corrective highs is unlikely.

Schedule for this week:

Monday, September 7
USA. Labor Day.

Tuesday, September 8
23:50 GMT - Japan. GDP;
09:00 GMT - Eurozone. GDP;
13:30 GMT – United Kingdom. Inflation Report Hearings.

Wednesday, September 9
00:30 GMT - Australia. Westpac Consumer Confidence;
01:30 GMT - PRC. Consumer Price Index (CPI);
14:00 GMT - Canada. Bank of Canada Interest Rate Decision;
14:00 GMT - Canada. Bank of Canada Rate Statement.

Thursday, September 10
01:00 GMT - Australia. MI Inflation Expectations;
11:45 GMT - Eurozone. ECB Interest Rate Decision;
12:30 GMT - Eurozone. ECB Press Conference and Monetary Policy Report;
12:30 GMT - USA. Initial Jobless Claims.

Friday, September 11
06:00 GMT - United Kingdom. GDP;
06:00 GMT - United Kingdom. Industrial Production;
06:00 GMT – Germany. Harmonised Index of Consumer Prices (HICP);
12:30 GMT - USA. Consumer Price Index (CPI);
18:00 GMT - USA. Federal Budget Balance.

Author: Anthony Porter, IAFT Analyst

Back


loaded:ok