Forex traders will start the new trading week with the final reading on August manufacturing PMI reports from Spain through Germany and the Eurozone as a whole. Economists anticipate no change from the previous data. The US and China have implemented their latest round of tariffs on each other yesterday, which will further disrupt the global supply chain. China seeks to diversify away from the US, will Europe be able to pick up the demand which will boost manufacturing across the continent? How will this impact the EURCHF which has been hovering at support levels? Follow the PaxForex Daily Fundamental Analysis and take the profitable side of this trade!
The Swiss consumer accelerated spending in July, the latest data out of Switzerland shows. The 1.4% annualized gain was double that of the previous month, but the Swiss Franc was unable to gain on the positive reading. Data this morning is expected to show that the manufacturing sector continued to contract in August which is likely to weigh on sentiment. Safe have flows into the Swiss Franc have slowed down amid a growing dispute between Switzerland and the EU. What does this mean for price action in the EURCHF? This morning’s fundamental analysis will explore moves into both directions.
Here are the key factors to keep in mind today for Euro trades:
- Spanish Markit Manufacturing PMI: The Spanish Markit Manufacturing PMI for August was reported at 48.8. Economists predicted a figure of 48.5. Forex traders can compare this to the Spanish Markit Manufacturing PMI for July which was reported at 48.2.
- Italian Markit/ADACI Manufacturing PMI: The Italian Markit/ADACI Manufacturing PMI for August is predicted at 48.5. Forex traders can compare this to the Italian Markit/ADACI Manufacturing PMI for July which was reported at 48.5.
- French Markit Manufacturing PMI: The Final French Markit Manufacturing PMI for August is predicted at 51.0. Forex traders can compare this to the previous French Markit Manufacturing PMI for August which was reported at 51.0.
- German Markit/BME Manufacturing PMI: The Final German Markit/BME Manufacturing PMI for August is predicted at 43.6. Forex traders can compare this to the previous German Markit/BME Manufacturing PMI for August which was reported at 43.6.
- Eurozone Markit Manufacturing PMI: The Final Eurozone Markit Manufacturing PMI PMI for June is predicted at 47.0. Forex traders can compare this to the previous Eurozone Markit Manufacturing PMI for June which was reported at 47.0.
Here are the key factors to keep in mind today for Swiss Franc trades:
- Swiss Retail Sales: Swiss Retail Sales for July increased by 1.4% annualized. Forex traders can compare this to Swiss Retail Sales for June which increased by 0.7% annualized.
- Swiss Manufacturing PMI: The Swiss Manufacturing PMI for August is predicted at 45.7. Forex traders can compare this to the Swiss Manufacturing PMI for July which was reported at 44.7.
- Swiss Total Sight Deposits and Swiss Domestic Sight Deposits: Swiss Total Sight Deposits for the week of August 30th are predicted at CHF592.1B and Swiss Domestic Sight Deposits are predicted at CHF480.0B. Forex traders can compare this to Swiss Total Sight Deposits for the week of August 23rd which were reported at CHF591.7B and to Swiss Domestic Sight Deposits which were reported at CHF478.1B.
Should price action for the EURCHF remain inside the or breakout above the 1.0830 to 1.0920 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0890
- Take Profit Zone: 1.1060 – 1.1110
- Stop Loss Level: 1.0800
Should price action for the EURCHF breakdown below 1.0830 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0790
- Take Profit Zone: 1.0670 – 1.0720
- Stop Loss Level: 1.0830
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. FX trading cooperation between forex traders and brokers is a key element for a successful partnerships. Join PaxForex today and find out how we help all our traders unlock the full potential of their trading accounts!
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5
