Daily Analytics : GBP/USD

What to Watch : GBP/USD

GBPUSD9-768x432

EUR/NZD has the potential to be a top mover among the majors this week with potential volatility coming for both the euro and the New Zealand dollar.

As we approach the end of the week, we’ll first get the latest monetary policy decision from the European Central Bank (no expected changes to policy) and the latest quarterly CPI data from New Zealand (Analysts see quarterly inflation cooling further to 0.5% in Q4 2020).

Given that the pair is in a longer-term downtrend since October of last year, the odds are in favor of the bears at the moment. And with the pair bouncing off of fresh lows around 1.6800, there may be an opportunity to play the trend at better prices.

So, I’m watching EUR/NZD for a potential swing short position, if we see a dovish ECB event (negative European outlook/surprise increase in stimulus) combined with bearish price action in the euro against the majors.

Couple that with a surprise better-than-expected CPI number from New Zealand, then the odds are pretty good the trend lower may return.

Asia.20210122

the Economic Calendar :

Before you place any orders, make sure you know all about the major market headlines in the last few hours:

  • U.K.’s retail sales at 7:00 am GMT
  • France’s manufacturing and services PMIs at 8:15 am GMT
  • Germany’s manufacturing and services PMIs at 8:30 am GMT
  • Eurozone’s manufacturing and services PMIs at 9:00 am GMT
  • U.K.’s manufacturing and services PMIs at 9:30 am GMT
  • Canada’s retail sales at 1:30 pm GMT

Written by Big Pippin, Author from Baby Pips

Want to Start Trading ?
Get Started Live Or Try a Free Demo

Copyright© ftgfx.com 2020 | All right reserved