The Week Ahead 24th May

Firstly apologies for the delay – I’ve been busy doing polynomial equations. You’re right, I need to get out more. Any way on with the job at hand. It’s a little light but I’ll do my best.

Last week was all about EURUSD as it took flight from around 1.0900 then fully breaking 1.12 today. We previously mentioned the FOMC is behind the curve and the market is re-pricing this accordingly. Things started to go askew from the slight miss on US CPI the previous Friday. Levels were broken and bulls remain in charge. The only minor dent in this trend was a spurious COMEY video indicating no pressure was given in thwarting the FBI investigation.

TODAY EURUSD was helped with Merkels comments on the currency being too weak. Let’s be clear. She’s powerful but no Draghi and doesn’t control monetary policy. Not that the price cared as we lept to new highs.

THIS WEEK

  • OPEC Meeting Thursday – USDCAD pretty much priced this on Friday but 1.3570 looks very nice to sell
  • CABLE and 1.3050 failed but 100hma at 1.2974 held which tells me something has to give. I’m slightly bullish only because of a rubbish USD
  • All eyes on EU PMI’S and German IFO – buy dips if weak
  • BOC Rate decision
  • FOMC Minutes – this was before the US CPI miss so be aware

That’s it from AP but please find charts below.

Patrick will be dropping in on Linked in as usual.

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About Patrick Reid

Patrick Reid has written 19 post in this blog.

Patrick Reid is a veteran FX Trader and Analyst. He also has inroads to BBC News and has a great knowledge of Geopolitical landscape

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