Forex traders will get final PMI data out of the Eurozone for July and economists anticipate no change. Investor confidence on the other hand is predicted to slide further in August as the Eurozone economy continues to weaken. The ECB is now likely to step in which will pressure the Euro to the downside. With a no-deal Brexit on the horizon, how will the EURGBP perform over the next few weeks? Subscribe to the PaxForex Daily Fundamental Analysis and join our fast growing community of profitable forex traders!
Here are the key factors to keep in mind today for Euro trades:
- Italian Services PMI and Composite PMI: The Italian Markit Services PMI for July is predicted at 50.6. Forex traders can compare this to the Italian Markit Services PMI for June which was reported at 50.5. The Italian Markit Composite PMI for July is predicted at 50.1. Forex traders can compare this to the Italian Markit Composite PMI for June which was reported at 50.1.
- French Services PMI and Composite PMI: The Final French Markit Services PMI for July is predicted at 52.2 Forex traders can compare this to the previous French Markit Services PMI for for July which was reported at 52.2. The Final French Markit Composite PMI for July is predicted at 51.7. Forex traders can compare this to the previous French Markit Composite PMI for for July which was reported at 51.7.
- German Services PMI and Composite PMI: The Final German Markit Services PMI for July is predicted at 55.4. Forex traders can compare this to the previous German Markit Services PMI for for July which was reported at 55.4. The Final German Markit/BME Composite PMI for July is predicted at 51.4. Forex traders can compare this to the previous German Markit/BME Composite PMI for for July which was reported at 51.4.
- Eurozone Services PMI and Composite PMI: The Final Eurozone Markit Services PMI for July is predicted at 53.3. Forex traders can compare this to the previous Eurozone Markit Services PMI for for July which was reported at 53.3. The Final Eurozone Markit Composite PMI for July is predicted at 51.5. Forex traders can compare this to the previous Eurozone Markit Composite PMI for for July which was reported at 51.5.
- Eurozone Sentix Investor Confidence: Eurozone Sentix Investor Confidence for August is predicted at -7.0. Forex traders can compare this to Eurozone Sentix Investor Confidence for July which was reported at -5.8.
Economists predict that the key UK services sector improved in July, despite a no deal Brexit more likely. UK services companies are working through the uncertain environment and adding more business. How will this impact the British Pound? With less than 100 days until Brexit, the British currency came under heavy selling pressure, is now the time to go long? This morning’s fundamental analysis will explore both direction in the EURGBP which has rallied into strong resistance.
Here is the key factor to keep in mind today for British Pound trades:
- UK Markit/CIPS Services PMI and Markit/CIPS Composite PMI: The UK Markit/CIPS Services PMI for July is predicted at 50.4 and the UK Markit/CIPS Composite PMI is predicted at 49.8. Forex traders can compare this to the UK Markit/CIPS Services PMI for June which was reported at 50.2 and to the UK Markit/CIPS Composite PMI which was reported at 49.7.
Should price action for the EURGBP remain inside the or breakdown below the 0.9145 to 0.9200 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9180
- Take Profit Zone: 0.8830 – 0.8890
- Stop Loss Level: 0.9235
Should price action for the EURGBP breakout above 0.9200 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9245
- Take Profit Zone: 0.9310 – 0.9370
- Stop Loss Level: 0.9200
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