Forex traders will eagerly await a fresh round of PMI data out of the Eurozone which is expected to move the Euro. Final readings on Services and Composite PMI data for September will be released and while economists predict no change from the previous reading, it may follow final Manufacturing PMI data into revisions. The EURGBP was able to advance after reaching support, will this trend continue or will economic data force a reversal? Subscribe to the PaxForex Daily Fundamental Analysis and take the profitable side of this currency pair.
The Brexit deadline is approaching and PM Johnson is now facing a test in parliament in regards to his deal, he told the EU that it will be either his deal or a no deal Brexit. Forex traders will also get the Services and Composite PMI data for September which is expected to show a slowdown, will it surprise to the upside? How will this impact the EURGBP? Today’s fundamental analysis will take a look at price action in both directions.
Here are the key factors to keep in mind today for Euro trades:
- Spanish Services PMI: The Spanish Markit Services PMI for September is predicted at 53.8. Forex traders can compare this to the Spanish Markit Services PMI for August which was reported at 54.3.
- Italian Services PMI and Composite PMI: The Italian Markit Services PMI for September is predicted at 50.4. Forex traders can compare this to the Italian Markit Services PMI for August which was reported at 50.6. The Italian Markit Composite PMI for September is predicted at 50.0. Forex traders can compare this to the Italian Markit Composite PMI for August which was reported at 50.3.
- French Services PMI and Composite PMI: The Final French Markit Services PMI for September is predicted at 51.6 Forex traders can compare this to the previous French Markit Services PMI for for September which was reported at 51.6. The Final French Markit Composite PMI for September is predicted at 51.3. Forex traders can compare this to the previous French Markit Composite PMI for for September which was reported at 51.3.
- German Services PMI and Composite PMI: The Final German Markit Services PMI for September is predicted at 52.5. Forex traders can compare this to the previous German Markit Services PMI for for September which was reported at 52.5. The Final German Markit/BME Composite PMI for September is predicted at 49.1. Forex traders can compare this to the previous German Markit/BME Composite PMI for for September which was reported at 49.1.
- Eurozone Services PMI and Composite PMI: The Final Eurozone Markit Services PMI for September is predicted at 52.0. Forex traders can compare this to the previous Eurozone Markit Services PMI for for September which was reported at 52.0. The Final Eurozone Markit Composite PMI for September is predicted at 50.4. Forex traders can compare this to the previous Eurozone Markit Composite PMI for for September which was reported at 50.4.
- Eurozone Retail Sales: Eurozone Retail Sales for August are predicted to increase by 0.3% monthly and by 2.0% annualized. Forex traders can compare this to Eurozone Retail Sales for July which decreased by 0.6% monthly and which increased by 2.2% annualized.
- Eurozone PPI: The Eurozone PPI for August is predicted to decrease by 0.4% monthly and by 0.5% annualized. Forex traders can compare this to the Eurozone PPI for July which increased by 0.2% monthly and by 0.2% annualized.
Here is the key factor to keep in mind today for British Pound trades:
- UK Markit/CIPS Services PMI and Markit/CIPS Composite PMI: The UK Markit/CIPS Services PMI for September is predicted at 50.3 and the UK Markit/CIPS Composite PMI is predicted at 50.0. Forex traders can compare this to the UK Markit/CIPS Services PMI for August which was reported at 50.6 and to the UK Markit/CIPS Composite PMI which was reported at 50.2.
Should price action for the EURGBP remain inside the or breakdown below the 0.8885 to 0.8935 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8910
- Take Profit Zone: 0.8620– 0.8680
- Stop Loss Level: 0.8970
Should price action for the EURGBP breakout above 0.8935 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8970
- Take Profit Zone: 0.9080 – 0.9145
- Stop Loss Level: 0.8935
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