empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

07.02.202309:43 Forex Analysis & Reviews: Trading plan for EUR/USD and GBP/USD on February 7

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Although the retail sales data for the Euro area was revised upwards, the number itself is still noticeably worse than the forecast. The rate of decline was expected to slow from -2.8% to -2.6%, but the revised data was -2.8%. This means that instead of improving, consumer activity deteriorated, ruling out the possibility of any GDP growth. Thus, the eurozone is unlikely to avoid a recession, and the only thing that the European Central Bank can do is to soften the parameters of its monetary policy. This will make the bank the first to cut interest rates, so it is not surprising that euro is falling sharply.

Retail sales (Europe):

Exchange Rates 07.02.2023 analysis

Pound was also losing ground, but not as much as euro. It also returned to the values at which it was before the publication of the retail sales data, indicating that the overbought condition of dollar has prompted a slight increase. Since the macroeconomic calendar is empty today, it is likely that a rebound will be seen in the market.

Exchange Rates 07.02.2023 analysis

EUR/USD slumped by over 300 pips in just three days. Most likely, this oversold condition will prompt a technical rebound some time this week.

In GBP/USD, movement halted around 1.2000, and only the breakdown of 1.1950 will trigger a reversal.

Mark Bom
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off