Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Preliminary French S&P Global Manufacturing PMI for May is predicted at 46.0, the Preliminary French S&P Global Services PMI at 54.2, and the Preliminary French S&P Global Composite PMI at 52.3. Forex traders can compare this to the French S&P Global Manufacturing PMI for April, reported at 45.6, the French S&P Global Services PMI at 54.6, and the French S&P Global Composite PMI at 52.4.
The Preliminary German S&P Global Manufacturing PMI for May is predicted at 45.0, the Preliminary German S&P Global Services PMI at 55.5, and the Preliminary German S&P Global Composite PMI at 53.5. Forex traders can compare this to the German S&P Global Manufacturing PMI for April, reported at 44.5, the German S&P Global Services PMI at 56.0, and the German S&P Global Composite PMI at 54.2.
The Preliminary Eurozone S&P Global Manufacturing PMI for May is predicted at 46.2, the Preliminary Eurozone S&P Global Services PMI at 55.6, and the Preliminary Eurozone S&P Global Composite PMI at 53.7. Forex traders can compare this to the Eurozone S&P Global Manufacturing PMI for April, reported at 48.5, the Eurozone S&P Global Services PMI at 56.2, and the Eurozone S&P Global Composite PMI at 54.1.
The Eurozone Current Account (s.a) for March is predicted at -€20.2B. Forex traders can compare this to the Eurozone Current Account (s.a.) for February, reported at €24.3B.
UK Public Sector Net Borrowing for April is predicted at £17.50B and UK Public Sector Net Borrowing excluding Banking Groups at -£0.57B. Forex traders can compare this to UK Public Sector Net Borrowing for March, reported at £20.71B, and UK Public Sector Net Borrowing excluding Banking Groups at £18.87B.
The Preliminary UK S&P Global Manufacturing PMI for May is predicted at 48.0, the Preliminary UK S&P Global Services PMI at 55.5, and the Preliminary UK S&P Global Composite PMI at 54.6. Forex traders can compare this to the UK S&P Global Manufacturing PMI for April, reported at 47.8, the Preliminary UK S&P Global Services PMI at 55.9, and the Preliminary UK S&P Global Composite PMI at 54.9.
The forecast for the EUR/GBP turned cautiously bullish after this currency pair stabilized inside its horizontal support area. Volatility could rise after the Kijun-sen and the Tenkan-sen flatlined while the Ichimoku Kinko Hyo Cloud resumes its downtrend. Traders should also monitor the CCI following its breakout from extreme oversold territory, as it has plenty of upside momentum. A move above zero could accelerate a partial reversal of the preceding sell-off. Will bulls overpower bears and pressure the EUR/GBP 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 0.8660 to 0.8710 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Short Position @ 0.8690
- Take Profit Zone: 0.8795 – 0.8820
- Stop Loss Level: 0.8640
Should price action for the EUR/GBP breakdown below 0.8660, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Long Position @ 0.8640
- Take Profit Zone: 0.8545 – 0.8585
- Stop Loss Level: 0.8660
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