Forex Weekly Outlook – 10112013

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Forex Weekly Outlook - 10112013
Forex Weekly Outlook - 10112013

Forex Weekly Outlook - 10112013

The past week was highly volatile where for the major pairs where the euro witnessed a sharp plunge due to the interest rate decision where the ECB cut the rate by 0.25% to a record low level; however the move was immediately reversed where 61.8% bullish correction was given.

Not only this, the mega data release of the non-farm payrolls showed significant improvement in the job market of the U.S. where the U.S. dollar gained against the majors and the euro fell again by nearly 90 points and closed in the bearish zone again.

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As for the British pound, the investor confidence in the U.K. economy fostered as the major economic indicators including the construction and as well the services sector PMI proved that there is a lot of growth potential in the economy, and both these sectors are performing much better than before. The GBP/USD remained in a wider range in midweek but eventually lost more than 100 points on Friday as the U.S. job numbers outweighed the forecasted figure.

The pair closed before the critical support level of 1.6020 where sellers would try entering the market again and take the pair further down; however, it would become safe to long if the pair moves and sustains above the 1.6020 level.

This upcoming week, we have more of medium to large impact fundamentals due where the U.K. unemployment rate is due along with Claimount count change, retail sales, and inflation numbers. On the other hand, the Euro investors would be eying on industrial production, German Prelim GDP, and EuroZone’s inflation numbers.

Gold found the direction it was looking for the past few weeks, where bears took over control and took the metal down from 1307 and 1301 support area after the release of NFP data on Friday. The metal dropped further and broke its 1296 and 1285 support levels and tested 1280, after which it managed to close at 1288. However, sellers are getting active where their sell orders might start triggering again with tight stop losses, set just above 1307.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com