Forex traders will get key inflation data out of the Eurozone today which is expected to show inflationary pressures remain absent. Some analysts question how long it will take the ECB to announce more stimulus as the Eurozone economy is cooling fast and with the US Fed poised to cut interest rates in the second-half of 2019. The Eurozone trade surplus is expected to shrink as a result of the global economic slowdown and today’s ZEW Survey is anticipated to show further deterioration in expectations. How will this impact the Euro after this currency descended into strong support levels? Will forex traders keep selling the EURUSD or await the US Fed statement tomorrow evening? Today’s fundamental analysis will explore the potential price action moves and trading set-ups.
Here are the key factors to keep in mind today for Euro trades:
- German PPI: The German PPI for May is predicted to increase by 0.1% monthly and by 2.1% annualized. Forex traders can compare this to the German PPI for April which increased by 0.5% monthly and by 2.5% annualized.
- Eurozone Trade Balance: The Eurozone Trade Balance for April is predicted at €8.8B. Forex traders can compare this to the Eurozone Trade Balance for March which was reported at €22.5B.
- Eurozone CPI and Eurozone Core CPI: The Eurozone CPI for May is predicted to increase by 0.2% monthly and by 1.2% annualized. Forex traders can compare this to the Eurozone CPI for April which increased by 0.7% monthly and by 1.2% annualized. The Eurozone Core CPI for May is predicted to increase by 0.9% monthly and by 0.8% annualized. Forex traders can compare this to the Eurozone Core CPI for April which increased by 0.9% monthly and by 0.8% annualized.
- German ZEW Survey and Eurozone ZEW Survey: The German ZEW Survey Current Situation Index for June is predicted at 6.1 and the German ZEW Survey Economic Expectations Index at -5.8. Forex traders can compare this to the German ZEW Survey Current Situation Index for May which was reported at 8.2 and to the German ZEW Survey Economic Expectations Index which was reported at -2.1. The Eurozone ZEW Survey Economic Sentiment Index for June is predicted at -3.6. Forex traders can compare this to the Eurozone ZEW Survey Economic Sentiment Index for May which was reported at -1.6.
Economic data out of the US will only feature one report, but it will deliver key housing data in a sector which has been struggling. Will forex traders get more data which points to a weak housing sector in the US and how will this impact retail sales? While tomorrow’s Fed announcement will overshadow today’s report, it should not be ignored as it may point to further stress in the US financial system. Will today’s release impact online forex trading in the US Dollar? Sign-up to the PaxForex Daily Fundamental Analysis and find out how to profit from it!
Here is the key factor to keep in mind today for US Dollar trades:
- US Housing Starts and Building Permits: US Housing Starts for May are predicted flat at 0.0% monthly at 1,235K starts and Building Permits are predicted to decrease by 0.4% monthly to 1,290K permits. Forex traders can compare this to US Housing Starts for April which increased by 5.7% monthly to 1,235K starts and to Building Permits which increased by 0.6% monthly to 1,296K permits.
Should price action for the EURUSD remain inside the or breakout above the 1.1215 to 1.1245 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1235
- Take Profit Zone: 1.1350 – 1.1390
- Stop Loss Level: 1.1160
Should price action for the EURUSD breakdown below 1.1215 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1200
- Take Profit Zone: 1.1100 – 1.1120
- Stop Loss Level: 1.1235
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