02.09.202010:32 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on September 2

Trading recommendations for EUR / USD on September 2

Analysis of transactions

Weak data on Eurozone inflation led to a price decrease in the EUR / USD pair, thus, short positions from 1.1951 brought about 50 points of profit from the market.

In addition, US Treasury Secretary Steven Mnuchin discussed the need for new economic aid package yesterday, calling on parties to begin a deeper dialogue on this issue. Such led to a slight increase in dollar demand in the market as well.

Today, an important report from ADP is scheduled to be published, where, if the indicators turn out to be better than the forecasts, EUR / USD will decline even further in the market.

Poor data on Eurozone PPI will also contribute to a price decrease in the euro.

• Set long positions from 1.1929 (green line on the chart) to 1.1993, and take profit at the level of 1.1993. However, only good data on retail sales in Germany will lead to a price increase in EUR / USD, but even then, such a scenario is very unlikely.
• Trade shorts from 1.1874 (red line on the chart) to 1.1809, and take profit at the level of 1.1809. Strong report from the ADP will raise demand for the US dollar, which will then result in a price decrease in EUR / USD.

Trading recommendations for GBP / USD on September 2

Analysis of transactions

Long positions from 1.3419 gave about 50 points of profit, as weak dollar demand and fairly good activity in the UK manufacturing sector led to a rise of GBP / USD in the forex market.

Today, a fairly weak demand may occur on GBP / USD, largely due to the upcoming hearings of the UK Treasury this afternoon. There, a discussion on the work of the Bank of England regarding economic recovery will commence, after which bank governor Andrew Bailey will step up and give a statement.

• Open long positions from 1.3399 (green line on the chart) to 1.3455 (thicker green line on the chart), and take profit at the level of 1.3455. The pound will rise sharply, if Bailey announces new programs to help the economy.
• Sell shorts from 1.3357 (red line on the chart). to 1.3300, and take profit around the level of 1.3300. Price will continue to decrease if the Bank of England released negative forecasts for the economy.