Forex for the week of July 14, 2014
The Forex markets are starting to head into the “summer range”as far as a we can tell, with several of the pairs slowing down in general. The EUR/USD is without a doubt the most obvious example of this, and without a doubt it appears ready to put you all to sleep at this point. We see the pair being attached to the 1.36 level, and as a result the overall range between the 1.35 and 1.37 levels seems to be safe at this point in time. With the EUR/USD pair being the largest financial instrument in the world, it shows just how slowly the markets are moving at this point.
With this being said, there are a few potential long-term trades that we see at the moment. The GBP/USD pair is one that shows promise at this point, as the 1.70 level has become a bit of a memory. The market also has shown us some support at the 1.71 level as well, and because of this, we feel that the market should next head to the 1.75 handle. However, with the serious lack of volatility in the Forex markets – it could take some time to get there. Nonetheless, we are bullish of the Pound at this point, and against several currencies – not just the USD.
Going forward there are a few announcements to pay attention to this week:
Mon. – AUD Monetary Policy Meeting Minutes
Tues. – GBP CPI y/y, EUR ZEW, USD Core Retail Sales, USD Yellin Testifies, CNY GDP
Weds. – USD PPI, CAD BoC Monetary Policy Report, BoC Rate Statement, BoC Press Conference
Thurs. – USD Unemployment Claims
Fri. – Core CPI