Forex traders started December with a heavy dose of Eurozone manufacturing data that surprised to the upside but remained in the contractionary territory except for France. The testimony of new ECB President Lagarde in front of the European Parliament will also be followed and the EURUSD is expected to face an increase in volatility as the trading day progresses. What impact will this have on price action? Today’s fundamental analysis will take a look at price action in both directions.

The ISM Manufacturing PMI out of the US for November is also expected to show that the manufacturing recession is ongoing but at a slower pace. US construction spending is expected to expand, but how will the US Dollar perform after initial Black Friday shopping data showed a string improvement as compared to last year. Will bulls push this currency pair higher or will bears get enough economic data for a reversal? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.