Weekly News Highlights EUR/USD Last week, the EUR/USD pair started above 1.2750 and climbed to 1.2840, despite good U.S. data. This speculation did not last long and the pair turned the slight bullish sentiment bearish. Before the actual Euro Flash Manufacturing and Services PMI data, which were released on Thursday, the pair dropped to as low as 1.2610. However, the European PMI did not disappoint the market and, therefore, the Euro took some of its previous losses back. The pair finished the week just below 1.2700. Investors will keep an eye on the German Ifo Business Climate (on Monday), the U.S. Core Durable Goods Orders and CB Consumer Confidence (on Tuesday), U.S. FOMC Statement (on Wednesday), the U.S. GDP data (on Thursday) and European CPI (on Friday). The pair may show some appreciation in the beginning of the week with regards to the German data, but before the FOMC statement the price may back down. The statement is expected to be hawkish. The European CPI should also create additional pressure on the pair. GBP/USD The GBP/USD pair showed similar patterns to the EUR/USD pair. The first two days of last week the pair increased to the 1.6185 area, but then fell. By Thursday it tested the 1.6000 support level. The biggest disappointment in the U.K. market came on Wednesday after the U.K. Official bank votes report was released. It did not show any progress on the potential interest rates hike. The bearish mood was also supported on Thursday when the U.K. Retail sales data showed a decrease of 0.3%. This was worse-than-expected. This week pay more attention to the U.S. market as their events will drive the pair. If the FOMC report points to an earlier interest rates increase, the price may fall below 1.6000. GOLD The price of gold reversed its two-week bullish sentiment and began to drop last Tuesday. The price reacted to better stock market returns, which spurred the demand for riskier, more profitable assets. As the third quarter releases are released and exceeding expectations, the price may fall even lower. This week, pay attention to the FOMC meeting and its report. It will be released on Wednesday evening.
Posted on: Tue, 28 Oct 2014 11:29:13 +0000
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