Central bank action

During the upcoming week traders and investors look to a scheduled speech from European Central Bank President Christine Lagarde and a key testimony from Federal Reserve Chair Jerome Powell for direction. Market participants will be expecting both Lagarde and Powell to sound more upbeat following recent interest policy statements from the ECB and the FED.

This week traders also look to a key interest rate decision from the Bank of England at a time when United Kingdom inflation metrics are moving higher. This weeks decision could be a major market mover for the British pound currency and the FTSE100.

The Bank of Japan meeting minutes, preliminary PMI Manufacturing numbers from the eurozone, and United States Durable Goods Orders and Consumer Sentiment is also set to be released.

Monday 21st June, ECB President Lagarde Speech

The European Central Bank President, Christine Lagarde, is set to deliver a scheduled speech to market participants. Traders and investors will be closely monitoring President Lagarde’s comments and latest thoughts on the eurozone economy and the global economy. The euro currency could become more volatile on the foreign exchange market if President Lagarde discusses topics such as bond buying, growth, interest rates, or inflation.

• The EURGBP pair is bullish while trading above the 0.8580 level, key resistance is found at the 0.8640 and 0.8680 levels.
• If the EURGBP pair moves below the 0.8580 level, sellers may test towards the 0.8480 and 0.8360 levels.

Tuesday 22nd June, FED Chair Powell Testimony

Federal Reserve Chair Jerome Powell testifies before Congress and is expected to be providing a broad overview of the United States economy and monetary policy. Chair Powell’s prepared remarks are published ahead of the appearance on Capitol Hill and usually have an impact on the financial market. Traders and investors will be anticipating that Chair Powell’s comments will largely be in-line with last weeks FOMC policy statement.

• The EURUSD pair is only bearish while trading below the 1.2080 level, key support is found at the 1.1840 and 1.1700 levels.
• If the EURUSD pair moves above the 1.2080 level, buyers may test towards the 1.2140 and 1.2240 levels.

Wednesday 23rd June, Bank of Japan Meeting Minutes

The Meeting Minutes of the Bank of Japan meetings are published one week after the official interest rate decision and monetary policy statement from the Japanese central bank.  The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Bank of Japan from the previous policy meeting.

• The USDJPY pair is only bearish while trading above the 109.30 level, further losses towards the 108.80 and 108.30 levels remain likely.
• If the USDJPY pair trades above the 109.30 level, buyers may test towards the 111.30 and 112.20 resistance levels.

Thursday 24th June, Bank of England Interest Rate Decision

The BoE interest rate recision is announced by the Bank of England and is widely considered an important event on the financial market calendar. If the Bank of England is hawkish about the inflationary outlook of the UK economy and raises the interest rates it is positive for the British pound currency. If the Bank of England has a dovish view on the UK economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative for the British pound.

• The GBPUSD pair is only bearish while trading below the 1.3980 level, key support is found at the 1.3750 and 1.3670 levels.
• If the GBPUSD pair moves above the 1.3980 level, buyers may test towards the 1.4040 and 1.4100 levels.

Friday 25th June, US Consumer Sentiment

The Michigan Consumer Sentiment Index released by the University of Michigan is a survey of personal consumer confidence in economic activity. It shows a picture of whether or not consumers are willing to spend money. Generally speaking, a high reading anticipates positive for the US dollar currency, while a low reading is seen as negative for the US dollar currency.

• The USDCHF pair is only bearish while trading below the 0.9125 level, key support is found at the 0.9000 and 0.8980 levels.
• If the USDCHF pair trades above the 0.9125 level, buyers may test towards the 0.9250 and 0.9400 resistance levels.