The last week turned out to be a good one for trading forecasts as two trading ideas on the EUR/GBP pair hit the targets as expected within the mentioned time frame. The bearish view on the GBP/USD failed, while the EUR/JPY idea is a long-term one and we shall track it each week from now on. Meanwhile, the idea on the USD index is playing out as expected.
The second EUR/GBP forecast titled “Eyes 0.7350-0.7400 by next weekend†published on Apr. 30, anticipated that the pair would extend its recovery and rise to 0.7350-0.7400 by this weekend. The pair rose sharply to 0.7418 level on Friday itself.
EUR/GBP: 250-pip rally well aniticpated
The first EUR/GBP forecast titled “Slim chance of a rise to 0.7250†was published on Apr. 23. The report anticipated a rise in the EUR/GBP to 0.7250 in the following week. The idea played out as expected.The second EUR/GBP forecast titled “Eyes 0.7350-0.7400 by next weekend†published on Apr. 30, anticipated that the pair would extend its recovery and rise to 0.7350-0.7400 by this weekend. The pair rose sharply to 0.7418 level on Friday itself.
GBP/USD stopped out
The report on GBP/USD titled “Expecting a re-test of 1.51 by the weekend†published on Apr. 28 anticipated fresh offers around 1.53-1.5344 and a drop to 1.51 levels. However, the USD sellers ensured the pair breached 1.5344 and rose to a high of 1.5490 before moving lower. Moreover, the markets continued to price-in a slowdown in the US first quarter growth right till the outcome of the Fed policy statement.USD index playing out as expected
The report on the USD index titled “Will the FOMC Statement strengthen the USD Index?†published on Apr. 29th talked about a possibility of a rebound in the USD index to 96.85-97.49 levels in case of a slightly less dovish Fed statement. The statement was slightly less dovish as the Fed remained optimistic regarding future growth despite slowdown in the first quarter. However, the rise in the USD index has been relatively slow. The index rose to 95.74 today and appears poised to reach to the anticipated target in a week’s time.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.