Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final Spanish GDP for the second quarter increased 0.5% quarterly and 2.2% annualized. Economists predicted an increase of 0.4% and 1.8%. Forex traders can compare this to the Spanish GDP for the first quarter, which increased 0.6% quarterly and 4.2% annualized.
The Preliminary French HCOB Manufacturing PMI for September is predicted at 46.0, the Preliminary French HCOB Services PMI at 46.0, and the Preliminary French HCOB Composite PMI at 46.0. Forex traders can compare this to the French HCOB Manufacturing PMI for August, reported at 46.0, the French HCOB Services PMI at 46.0, and the French HCOB Composite PMI at 46.0.
The Preliminary German HCOB Manufacturing PMI for September is predicted at 39.5, the Preliminary German HCOB Services PMI at 47.2, and the Preliminary German HCOB Composite PMI at 44.8. Forex traders can compare this to the German HCOB Manufacturing PMI for August, reported at 39.1, the German HCOB Services PMI at 47.3, and the German HCOB Composite PMI at 44.6.
The Preliminary Eurozone HCOB Manufacturing PMI for September is predicted at 44.0, the Preliminary Eurozone HCOB Services PMI at 47.7, and the Preliminary Eurozone HCOB Composite PMI at 46.5. Forex traders can compare this to the Eurozone HCOB Manufacturing PMI for August, reported at 43.5, the Eurozone HCOB Services PMI at 47.9, and the Eurozone HCOB Composite PMI at 46.7.
UK Retail Sales for August rose by 0.4% monthly and contracted by 1.4% annualized. Economists predicted an increase of 0.5% and a decrease of 1.2%. Forex traders can compare this to UK Retail Sales for July, which dropped by 1.1% monthly and 3.1% annualized. UK Core Retail Sales for August rose by 0.6% monthly and declined by 1.4% annualized. Economists predicted a rise of 0.6% and a contraction of 1.3%. Forex traders can compare this to UK Core Retail Sales for July, which declined by 1.4% monthly and 3.3% annualized.
The Preliminary UK S&P Global/CIPS Manufacturing PMI for May is predicted at 43.0, the Preliminary UK S&P Global/CIPS Services PMI at 49.2, and the Preliminary UK S&P Global/CIPS Composite PMI at 48.7. Forex traders can compare this to the UK S&P Global/CIPS Manufacturing PMI for April, reported at 43.0, the Preliminary UK S&P Global/CIPS Services PMI at 49.5, and the Preliminary UK S&P Global/CIPS Composite PMI at 48.6.
The forecast for the EUR/GBP remains cautiously bearish after this currency pair accelerated into its horizontal resistance area. Volatility could remain high after the Kijun-sen has flatlined, but the Tenkan-sen moves higher. The Ichimoku Kinko Hyo Cloud narrowed, and it trends sideways, suggesting a bigger move in price action is pending. Traders should monitor the CCI in extreme overbought territory, as a breakdown could start the next leg lower. Can bears regain control over the EUR/GBP and force this currency pair into its horizontal support 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 breakdown below the 0.8670 to 0.8695 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8680
- Take Profit Zone: 0.8545 – 0.8575
- Stop Loss Level: 0.8720
Should price action for the EUR/GBP breakout above 0.8695, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8720
- Take Profit Zone: 0.8795 – 0.8820
- Stop Loss Level: 0.8695
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