Forex traders will get a broad selection of PMI data across the Eurozone to start the first full trading week of 2020. Economists are looking for slight improvements in the services sector. German retail sales were released this morning and came in significantly better-than-expected, suggesting a strong holiday shopping season. The EURGBP failed to capitalize on the report and remained in a holding pattern inside of its horizontal resistance area. How will price action react to today’s PMI data? Today’s fundamental analysis will take a look at price action in both directions.

Brexit is on track to be completed on January 31st 2020, but the transition period will keep the UK aligned with EU rules and regulation until December 31st 2020. This allows both sides a limited time-frame to reach a deal. UK economic data ended in 2019 on a soft spot. Economists expected today’s final services PMI to be revised higher, but to remain below the 50.0 level. Will bears pressure for a breakdown after the release of PMI data, or can bulls push for a breakout? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.