Getting latest data loading
Home / Blog / blog / FX – The week ahead, Monday 29 Feb

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

FX – The week ahead, Monday 29 Feb

Macro observations

  • Brexit debate still weighing on GBP
  • USD strength derived in part from further Chinese currency devaluation
  • Note PBoC cut the reserve ratio requirement (RRR) on Monday 29 Feb, though market reaction unusually muted.

Key data this week (Sign up here to get our daily live macro-calendar)

UK

  • M4 Money Supply, Mortgage Approvals (Mon)
  • PMI Manufacturing (Tue)
  • PMI Construction (Wed)

US

  • Chicago PMI (Mon)
  • PMI Manufacturing, Construction Spending, ISM Manufacturing (Tue)
  • Crude Inventories, MBA Mortgage Applications, Fed’s Beige Book (Wed)
  • Jobless Claims, ISM Non-Manufacturing, Services Composite, Durable Goods Orders (Thur)
  • Unemployment rate, Non-Farm Payrolls (Fri)

EU

  • PMI Manufacturing, Unemployment Rate (Tue)
  • PPI (Wed)
  • Retail Sales (Thur)
  • PMI (Fri)

GBP/USD (‘Cable’)

GBP/USD (15-min)

GBPUSD 15min (-)

 

GBP/USD (daily)

GBPUSD daily (-)

 

Technicals (based on daily price data unless otherwise stated)

  • Pullback from 50-day MA intensified
  • Potential for second leg of bearish flag pattern to take GBP/USD towards 1.35 between now and June (Brexit referendum)
  • 15-min chart shows short-term upside to 1.395 as long as RSI supported

 

GBP/EUR

GBP/EUR (15-min)   

GBPEUR 15min (-)

 

GBP/EUR (daily)

GBPEUR daily (-) 

Technicals (based on daily price data unless otherwise stated)

  • 3.5 month downtrend
  • MACD, RSI diverging bullishly, but sitting bearishly
  • A breakout above 3.5 month falling highs might tip the balance in favour of bulls

EUR/USD

EUR/USD (15-min)

EURUSD 15min (-)

 

EUR/USD (daily)

EURUSD daily (-)

 

Technicals (based on daily price data unless otherwise stated)

  • Breakdown below 2016 rising lows
  • Stochastics oversold
  • MACD crossed below zero line
« Back to Category

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

Comments are closed.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
.