Here are the key factors to keep in mind today for Euro trades:
- Eurozone GDP: The Eurozone performed better than expected during the fourth-quarter as the GDP rose 0.3% and year-over-year it rose 0.9%. Economists expected an increase of 0.2% and 0.8% which would have matched the third-quarter performance. Germany was the main driver behind the positive surprise. German GDP rose 0.7% in the fourth-quarter and 1.6% year-over-year. Expectations called for an increase of only 0.3% and 1.2% which can be compared to the increase of 0.1% and 1.2% reported in the third-quarter.
- This helped offset slower than expected growth in France where the GDP figure showed an increase of 0.2% year-over-year; economists expected an increase of 0.3% while Italian GDP also helped out a better than expected Eurozone figure. Italian GDP was reported at 0.0% in the fourth-quarter and showed a contraction of 0.3%. This was better than the 0.1% contraction and 0.5% contraction expected by economists.
Here is the key factor to keep in mind today for British Pound trades:
- UK Construction Output: Economists expected an increase of 2.7% in December and 5.5% year-over-year. The report showed an increase of only 0.4%in December, but the year-over-year figure matched expectations. November enjoyed upward revisions and now shows a contraction of 1.8% and a year-over-year increase of 5.8%.
Should price action for the EURGBP remain inside the or breakout above the 0.7380 to 0.7420 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.7400
- Take Profit Zone: 0.7980 – 0.8020
- Stop Loss Level: 0.7200
Should price action for the EURGBP breakdown below 0.7380 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.7350
- Take Profit Zone: 0.7100 – 0.7200
- Stop Loss Level: 0.7420
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
