Forex traders will get plenty of PMI data out of the Eurozone today which could move the Euro. The economy has slowed down a lot more than economists predicted and the release of this morning’s factory orders out of Germany is anticipated to deliver the latest piece of evidence that the Eurozone is likely to cool further. What impact will today’s PMI data have on the EURCAD? Today’s fundamental analysis will take a look at price action in both directions.
The Canadian Dollar experienced a rise in volatility after the Bank of Canada kept interest rates unchanged, but indicated that an interest rate cut may follow soon as the economy is slowing down. Forex traders will get the Ivey Manufacturing PMI for October and economists expected a further contraction, but at a reduced pace. How will this impact price action in the EURCAD? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Here are the key factors to keep in mind today for Euro trades:
- German Factory Orders: German Factory Orders for September are predicted to increase by 0.1% monthly and to decrease by 6.3% annualized. Forex traders can compare this to German Factory Orders for August which decreased by 0.6% monthly and by 6.7% annualized.
- Spanish Industrial Production: Spanish Industrial Production for September is predicted to increase by 1.6% annualized. Forex traders can compare this to Spanish Industrial Production for August which increased by 1.7% annualized.
- Spanish Services PMI: The Spanish Markit Services PMI for October is predicted at 52.8. Forex traders can compare this to the Spanish Markit Services PMI for September which was reported at 53.3.
- Italian Services PMI and Composite PMI: The Italian Markit Services PMI for October is predicted at 51.0. Forex traders can compare this to the Italian Markit Services PMI for September which was reported at 51.4. The Italian Markit Composite PMI for October is predicted at 50.2. Forex traders can compare this to the Italian Markit Composite PMI for September which was reported at 50.6.
- French Services PMI and Composite PMI: The Final French Markit Services PMI for October is predicted at 52.9 Forex traders can compare this to the previous French Markit Services PMI for for October which was reported at 52.9. The Final French Markit Composite PMI for October is predicted at 52.6. Forex traders can compare this to the previous French Markit Composite PMI for for October which was reported at 52.6.
- German Services PMI and Composite PMI: The Final German Markit Services PMI for October is predicted at 51.2. Forex traders can compare this to the previous German Markit Services PMI for for October which was reported at 51.2. The Final German Markit/BME Composite PMI for October is predicted at 48.6. Forex traders can compare this to the previous German Markit/BME Composite PMI for for October which was reported at 48.6.
- Eurozone Services PMI and Composite PMI: The Final Eurozone Markit Services PMI for October is predicted at 51.8. Forex traders can compare this to the previous Eurozone Markit Services PMI for for October which was reported at 51.8. The Final Eurozone Markit Composite PMI for October is predicted at 50.2. Forex traders can compare this to the previous Eurozone Markit Composite PMI for for October which was reported at 50.2.
- Eurozone Retail Sales: Eurozone Retail Sales for September are predicted to increase by 0.1% monthly and by 2.4% annualized. Forex traders can compare this to Eurozone Retail Sales for August which increased by 0.3% monthly and by 2.1% annualized.
Here is the key factor to keep in mind today for Canadian Dollar trades:
- Canadian Ivey PMI: The Canadian Ivey PMI for October is predicted at 49.3. Forex traders can compare this to the Canadian Ivey PMI for September which was reported at 48.7.
Should price action for the EURCAD remain inside the or breakout above the 1.4545 to 1.4605 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4580
- Take Profit Zone: 1.4860 – 1.4920
- Stop Loss Level: 1.4510
Should price action for the EURCAD breakdown below 1.4545 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4510
- Take Profit Zone: 1.4245 – 1.4305
- Stop Loss Level: 1.4580
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