German factory orders unexpectedly plunged and confirmed that the global economy extends its weakness. Forex traders anticipate the final reading on third-quarter GDP out of the Eurozone, together with retail sales. Economists anticipate a contraction in retail sales ahead of the holiday shopping season. How will the EURCAD react following the release of more Eurozone economic data? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
Forex traders will get Canadian trade data as well as the key Ivey PMI. Economists anticipate a sharp rebound in the Ivey PMI and the Bank of Canada kept interest rates unchanged at 1.75% as it views the global economy as solid. What impact will today’s data have on the EURCAD? Can bears force more downside or will bulls step in an attempt a recovery? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.
Here are the key factors to keep in mind today for Euro trades:
- German Factory Orders: German Factory Orders for October decreased by 0.4% monthly and by 5.5% annualized. Economists predicted an increase of 0.4% monthly and a decrease of 4.7% annualized. Forex traders can compare this to German Factory Orders for September which increased by 1.3% monthly and decreased by 5.4% annualized.
- Spanish Industrial Production: Spanish Industrial Production for October is predicted to decrease by 0.5% annualized. Forex traders can compare this to Spanish Industrial Production for September which increased by 0.8% annualized.
- Eurozone Employment: Final Eurozone Employment for the third quarter is predicted to increase by 0.1% quarterly and by 1.0% annualized. Forex traders can compare this to previous Eurozone Employment for the third quarter which increased by 0.1% quarterly and by 1.0% annualized.
- Eurozone Retail Sales: Eurozone Retail Sales for October are predicted to decrease by 0.5% monthly and by 2.2% annualized. Forex traders can compare this to Eurozone Retail Sales for September which increased by 0.1% monthly and by 3.1% annualized.
- Eurozone GDP: Eurozone Final GDP for the third quarter is predicted to increase by 0.2% quarterly and by 1.2% annualized. Forex traders can compare this to the previous Eurozone GDP for the third quarter which increased by 0.2% quarterly and by 1.2% annualized. Eurozone Household Consumption for the third quarter is predicted to increase by 0.3% quarterly, Eurozone Government Expenditure is predicted to increase by 0.4% quarterly, and Eurozone Gross Fixed Capital is predicted to increase by 0.3% quarterly. Forex traders can compare this to Eurozone Household Consumption for the second quarter which increased by 0.2% quarterly, to Eurozone Government Expenditure which increased by 0.4% quarterly, and to Eurozone Gross Fixed Capital which increased by 5.6% quarterly.
Here are the key factors to keep in mind today for Canadian trades:
- Canadian International Merchandise Trade Balance: The Canadian International Merchandise Trade Balance for October is predicted at -C$1.39B. Forex traders can compare this to the Canadian International Merchandise Trade Balance for September which was reported at -C$0.98B.
- Canadian Ivey PMI: The Canadian Ivey PMI for November is predicted at 53.8. Forex traders can compare this to the Canadian Ivey PMI for October which was reported at 48.2.
Should price action for the EURCAD remain inside the or breakdown below the 1.4585 to 1.4645 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4615
- Take Profit Zone: 1.4415 – 1.4455
- Stop Loss Level: 1.4670
Should price action for the EURCAD breakout above 1.4645 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4670
- Take Profit Zone: 1.4755 – 1.4800
- Stop Loss Level: 1.4645
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Do you trade with one of the most trusted MT4 forex brokers? Sign-up with PaxForex today and join one of the fastest-growing trading communities in the forex market.
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