Forex traders will get ZEW data out of Germany and the Eurozone today. Economists predict a minor slowdown in January as compare to December, but German data has been extremely disappointing. The EURGBP is in a holding pattern inside of its horizontal support area, but a disappointment in today’s economic data is expected to move this currency pair. Will bulls push price action higher, or will bears force a breakdown? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
Following November’s extremely strong labor report, forex traders look forward to today’s data featuring a snapshot for December. A second consecutive strong report is likely to rally the British Pound. Economic data out of the UK has received a boost after PM Johnson secured an overwhelming majority in parliament, delivering Brexit just over two weeks ago. How will the EURGBP react after today’s employment report out of the UK? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.
Here is the key factor to keep in mind today for Euro trades:
- German ZEW Survey and Eurozone ZEW Survey: The German ZEW Survey Current Situation Index for January is predicted at -10.0, and the German ZEW Survey Economic Expectations Index at 22.0. Forex traders can compare this to the German ZEW Survey Current Situation Index for December, which was reported at -9.5 and to the German ZEW Survey Economic Expectations Index, which was reported at 26.7. The Eurozone ZEW Survey Economic Sentiment Index for January is predicted at 30.0. Forex traders can compare this to the Eurozone ZEW Survey Economic Sentiment Index for December, which was reported at 25.6.
Here are the key factors to keep in mind today for British Pound trades:
- UK Jobless Claims Change and Claimant Count Rate: The UK Jobless Claims Change for January is predicted at 22.6K, and the Claimant Count Rate is predicted at 3.5%. Forex traders can compare this to the UK Jobless Claims Change for December, which was reported at 14.9K and to the Claimant Count Rate, which was reported at 3.5%.
- UK Employment Change, ILO Unemployment Rate, and Average Weekly Earnings: The UK Employment Change for the tri-monthly period ending in December is predicted at 170K, and the ILO Unemployment Rate is predicted at 3.8%. Forex traders can compare this to the UK Employment Change for November, which was reported at 208K and to the ILO Unemployment Rate, which was reported at 3.8%. Average Weekly Earnings for the tri-monthly period ending in December are predicted to increase by 3.0% annualized, and Average Weekly Earnings Excluding Bonuses are predicted to increase by 3.3% annualized. Forex traders can compare this to Average Weekly Earnings for November, which increased by 3.2% and Average Weekly Earnings Excluding Bonuses, which increased by 3.4%.
Should price action for the EURGBP remain inside the or breakdown below the 0.8300 to 0.8350 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8330
- Take Profit Zone: 0.8060 – 0.8115
- Stop Loss Level: 0.8370
Should price action for the EURGBP breakout above 0.8350 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8370
- Take Profit Zone: 0.8470 – 0.8500
- Stop Loss Level: 0.8330
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Online forex trading represents the biggest sector of the financial market and PaxForex is home to one of the fastest-growing communities of profitable forex traders, sign-up today, and find out why!
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
