empty
 
 
31.01.2023 10:49 AM
Trading plan for EUR/USD and GBP/USD on January 31

Pound rose to highs for more than a week, but then fell and is currently on its way towards the lows. Most likely, it will continue to decline as forecasts on the UK credit market are pointing to a slowdown. In particular, the number of approved mortgages is expected to amount to 45,000, which is lower than the 46,100 the previous month. The volume of mortgage lending may also reach £4.0 billion, down from £4.4 billion last month.

Mortgage lending is directly related to the real estate market, which is very important for the UK economy. Construction and property transactions account for at least 20% of the economy and carry approximately the same weight as retail sales.

Number of approved mortgages (UK):

This image is no longer relevant

As noted above, euro has fallen to lows, but has a higher chance of rebounding earlier than pound. This is because even though the preliminary Q4 GDP data in the eurozone is expected to slowdown from 2.3% to 1.6%, the US year-on-year growth rate is noticeably lower. That would cause a local surge in risk appetite.

GDP (Europe):

This image is no longer relevant

For pound, there is a chance to return to highs as soon as the US session starts because ahead is the monetary policy meeting of the Bank of England.

EUR/USD is in a sideways trend, trading at 1.0830/1.0930. At the time of writing, it is at the lows of the price channel, but a clear breakdown has not been observed yet. Failure to fall below 1.0830 could lead to a rebound.

This image is no longer relevant

GBP/USD is also in a sideways trend, trading at 1.2300/1.2440. A surge in buying pressure could prompt a rebound in the market.

Mark Bom,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In June we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback