This trading week, which has been quite active, is coming to an end. Today, traders are becoming calmer, whereas price ranges are narrowing. It means that investors are leaving for the weekend. Meanwhile, the United Kingdom has published an interesting macroeconomic report.
Thus, a decline in UK retail sales accelerated to 3.2% from 1.6%. In addition, the previous data was downwardly revised from 1.0%. The news had just a minor effect on the pound sterling. A drop in the British currency is very insignificant. Traders are not ready to sell it off.
Meanwhile, the final inflation figures from the eurozone met forecasts. What is more, they were priced in long ago.
In general, market activity is rather low. It seems that traders are already getting ready for the Jackson Hole event. The fact is that Fed officials are expected to drop hints about their future actions. Since, until this event, the macroeconomic calendar is empty, the market is likely to trade at the current levels.
On the trading chart, we see that the euro/dollar pair slackened near 1.0850, which is not far from the low of the current correctional cycle.
If the price settles below 1.0900, the volume of sell orders is likely to rise, thus pushing the euro even deeper. Thus, the single currency may slide to 1.0800.
The upward scenario suggests a slowdown in the correctional cycle and the beginning of a sideways movement.
Notably, the pound/dollar pair has been trading within the range for three weeks already. The width of the range is about 150 pips. Such a movement may point to the accumulation process before a considerable price change.
If the quote continues trading below 1.2650, the downward scenario will remain in force. In the event of this, the correction will also continue. This, in turn, will boost the number of short positions, thus pushing the price to a fresh local low. Meanwhile, the upward scenario suggests the pound’s recovery. If the price consolidates above 1.2800 in the daily period, traders will get an initial technical signal of an upward movement.
That’s all for now. We keep monitoring the financial market situation. Subscribe to our channel. See you in several hours. We will take a close look at the US trading session.
00:00 Introduction
00:22 Change in retail sales in the UK,
00:45 Annual inflation rate in the euro area
00:54 The market is preparing for the symposium in Jackson Hole
01:17 GBP/USD
01:52 EUR/USD
02:42 Conclusion
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1 Comment
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