Investors’ attention will focus on two major events this week.
First, the elections to be held on Wednesday in the Netherlands, this time receiving worldwide attention following the popularity of Geert Wilders, head of the far-right party “Freedom Party”.
The elections in the Netherlands will start the season in the European elections – and a victory of Wilders may affect the elections in the entire continent.
Investors are concerned about Wilders’s intention to hold a referendum on separation of Holland from the Euro zone.
On Wednesday there will be also a press conference of the Federal Reserve, and investors expect that following the good figures of the labor market and good economic data from the USA, the bank would announce the first rate hike in 2017. The Bank will also publish its expectations for GDP growth, inflation and future jams.
Goldman Sachs economists anticipate more interest rate hikes in March, September and December.
An interest rate decision expected this week also by the Bank of England, and economists expect it would remain unchanged.
Donald Trump’s administration is expected to disclose this week the budget to 2018. According to estimates, the budget would include an increase of $ 54 billion in military spending, the most significant jump since 2008.
On 4 hours chart the pair broke above a diagonal resistance line, and now the trend is an up trend.
The up trend also came after last week the pair came to a weekly resistance area which once again was strong enough to hold the pair from going down.
The main tendency is to try and enter call trades for short and medium time frames.