While forex traders remain focused on developments in the US-China trade war as well as the Yuan, they will receive a heavy dose of economic data out of the Eurozone. CPI readings out of Spain and Germany will be closely watched by the ECB, but Eurozone confidence data is expected to move the Euro. Economists anticipate a further slowdown of all sub-components with the key Business Climate Indicator seen sliding further into negative territory. Will the EURUSD be able to advance off of strong support levels despite the expected negative tone in economic data? Subscribe to the PaxForex Daily Fundamental Analysis and where you grow your balance trade by trade!

The updated reading on second-quarter US GDP is expected to see a minor downward revision, but forex traders are likely to discount it as economic data released during the third-quarter so far has been weaker than expected. As new tariffs are set to kick in on Sunday and the global economy slowing down, the US Federal Reserve will be closely watched. Markets expected an interest rate cut in September, with some holding out for a 50 basis point cut surprise. How will this impact the US Dollar? Will the labor market hold up and can the consumer borrow more to spend? Price action in the EURUSD is grinding at support, is a short-covering rally on the horizon? Today’s fundamental analysis will take a look in both directions of the world’s most liquid currency pair.