The Euro has performed better than expected over the past trading sessions and forex traders will pay close attention to this morning’s PMI data out of the Eurozone. Economists anticipate the data to show overall weakness across the continent which could trigger a sell-off in the Euro to start the new trading month. Unemployment data out of Germany, Italy and the Eurozone could also add further volatility and allow the EURGBP to extend its sell-off which is currently in its second day. Do your forex trading strategies deliver consistent profits? Sign-up today to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade!
Here are the key factors to keep in mind today for Euro trades:
- Spanish Markit Manufacturing PMI: The Spanish Markit Manufacturing PMI for June is predicted at 49.5. Forex traders can compare this to the Spanish Markit Manufacturing PMI for May which was reported at 50.1.
- Italian Markit/ADACI Manufacturing PMI: The Italian Markit/ADACI Manufacturing PMI for June is predicted at 48.8. Forex traders can compare this to the Italian Markit/ADACI Manufacturing PMI for May which was reported at 49.7.
- French Markit Manufacturing PMI: The Final French Markit Manufacturing PMI for June is predicted at 52.0. Forex traders can compare this to the previous French Markit Manufacturing PMI for June which was reported at 52.0.
- German Markit/BME Manufacturing PMI: The Final German Markit/BME Manufacturing PMI for June is predicted at 45.4. Forex traders can compare this to the previous German Markit/BME Manufacturing PMI for June which was reported at 45.4.
- German Unemployment Change and German Unemployment Rate: The German Unemployment Change for June is predicted at -3K and the German Unemployment Rate at 5.0%. Forex traders can compare this to the German Unemployment Change for May which was reported at 60K and to the German Unemployment Rate which was reported at 5.0%.
- Italian Unemployment Rate: The Italian Unemployment Rate for May is predicted at 10.3%. Forex traders can compare this to the Italian Unemployment Rate for April which was reported at 10.2%.
- Eurozone Markit Manufacturing PMI: The Final Eurozone Markit Manufacturing PMI PMI for June is predicted at 47.8. Forex traders can compare this to the previous Eurozone Markit Manufacturing PMI for June which was reported at 47.8.
- Eurozone M3 Money Supply: Eurozone M3 Money Supply for May is predicted to increase by 4.6% annualized. Forex traders can compare this to Eurozone M3 Money Supply for April which increased by 4.7% annualized. Eurozone Private Sector Loans for May are predicted to increase by 3.5% annualized. Forex traders can compare this to Eurozone Private Sector Loans for April which increased by 3.4% annualized.
- Eurozone Unemployment Rate: The Eurozone Unemployment Rate for May is predicted at 7.6%. Forex traders can compare this to the Eurozone Unemployment Rate for April which was reported at 7.6%.
As the leadership race for the next British PM is in full swing, Boris Johnson continues to hold on to his lead. With just over two week’s away until the official result, forex traders are cautious in the British Pound trades. This morning’s data will include consumer lending data as well as mortgage approvals which have been stronger than expected. Will this trend continue? The Manufacturing PMI will also be in focus after the gauge slipped below 50, will it be able to push above it and defy expectations? The EURGBP has plenty of room to correct to the downside, will bears be able to use today’s economic data as a catalyst? Take a look at today’s fundamental analysis and get the most profitable trading set-up.
Here are the key factors to keep in mind today for British Pound trades:
- UK Consumer Credit and Net Lending Securities on Dwellings: UK Net Consumer Credit for May is predicted at £0.9B and Net Lending Securities on Dwellings is predicted at £4.2B. Forex traders can compare this to UK Net Consumer Credit for April which was reported at £0.9B and to Net Lending Securities on Dwellings which was reported at £4.3B.
- UK Mortgage Approvals: UK Mortgage Approvals for May are predicted at 65.5K. Forex traders can compare this to UK Mortgage Approvals for April which were reported at 66.3K.
- UK M4 Money Supply: UK M4 Money Supply for May is predicted to increase by 0.6% monthly and by 2.9% annualized. Forex traders can compare this to UK M4 Money Supply for April which increased by 0.9% monthly and by 3.0% annualized.
- UK Markit Manufacturing PMI: The UK Markit Manufacturing PMI for June is predicted at 49.5. Forex traders can compare this to the UK Markit Manufacturing PMI for May which was reported at 49.4.
Should price action for the EURGBP remain inside the or breakdown below the 0.8915 to 0.8955 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8935
- Take Profit Zone: 0.8650 – 0.8725
- Stop Loss Level: 0.8990
Should price action for the EURGBP breakout above 0.8955 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9000
- Take Profit Zone: 0.9110 – 0.9165
- Stop Loss Level: 0.8955
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