Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final French CPI for November is predicted to decrease by 0.2% monthly and increase by 3.4% annualized. Forex traders can compare this to the French CPI for October, which expanded by 0.1% monthly and 4.0% annualized. The Final French Harmonized CPI for November is predicted to contract by 0.3% monthly and rise by 3.8% annualized. Forex traders can compare this to the French Harmonized CPI for October, which rose by 0.2% monthly and 4.5% annualized.
The Preliminary French HCOB Manufacturing PMI for December is predicted at 43.3, the Preliminary French HCOB Services PMI at 46.0, and the Preliminary French HCOB Composite PMI at 45.0. Forex traders can compare this to the French HCOB Manufacturing PMI for November, reported at 42.9, the French HCOB Services PMI at 45.4, and the French HCOB Composite PMI at 44.6.
The Preliminary German HCOB Manufacturing PMI for December is predicted at 43.2, the Preliminary German HCOB Services PMI at 49.8, and the Preliminary German HCOB Composite PMI at 48.2. Forex traders can compare this to the German HCOB Manufacturing PMI for November, reported at 42.6, the German HCOB Services PMI at 49.6, and the German HCOB Composite PMI at 47.8.
The Preliminary Eurozone HCOB Manufacturing PMI for December is predicted at 44.6, the Preliminary Eurozone HCOB Services PMI at 49.0, and the Preliminary Eurozone HCOB Composite PMI at 48.0. Forex traders can compare this to the Eurozone HCOB Manufacturing PMI for November, reported at 44.2, the Eurozone HCOB Services PMI at 48.7, and the Eurozone HCOB Composite PMI at 47.6.
The UK S&P Global/CIPS Manufacturing PMI for December is predicted at 47.5, the UK S&P Global/CIPS Services PMI at 51.0, and the UK S&P Global/CIPS Composite PMI at 50.9. Forex traders can compare this to the UK S&P Global/CIPS Manufacturing PMI for November, reported at 47.2, the UK S&P Global/CIPS Services PMI at 50.9, and the UK S&P Global/CIPS Composite PMI at 50.7.
The forecast for the EUR/GBP is cautiously bullish after this currency broke out of its horizontal support area. Adding to the rising upside momentum is the ascending Tenkan-sen and the stabilizing Ichimoku Kinko Hyo Cloud, but the Kijun-sen is flat. Traders should also monitor the CCI following its double breakout from extreme oversold territory and above zero. This technical indicator has plenty of upside potential to drive this currency pair higher. Can bulls maintain control over the EUR/GBP and pressure price action into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EUR/GBP remain inside the or breakout above the 0.8590 to 0.8615 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8600
- Take Profit Zone: 0.8695 – 0.8720
- Stop Loss Level: 0.8555
Should price action for the EUR/GBP breakdown below 0.8590, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8555
- Take Profit Zone: 0.8435 – 0.8495
- Stop Loss Level: 0.8590
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