Final Manufacturing PMI data out of the Eurozone and key member countries will be in focus today. German data will be the most important one as it has been dragging down the Eurozone as a whole. Inflation data will also be released where economists expect no inflationary pressures, forex traders should be prepared for a potentially lower reading below 1.0% annualized. How will this impact the EURUSD which is trading at extreme oversold conditions? Today’s fundamental analysis will explore the upside potential and weigh the downside risk.
After yesterday’s disappointment in the Chicago PMI, forex traders will focus on today’s ISM Manufacturing Index for September. Economists expect a small rebound back above 50.0 after it unexpectedly dipped below 50.0 in August. Construction spending is also anticipated to increase. The US Dollar extended its gains against the Euro, will today’s data force a reversal or will the sell-off continue? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Here are the key factors to keep in mind today for Euro trades:
- Spanish Markit Manufacturing PMI: The Spanish Markit Manufacturing PMI for September is predicted at 48.2. Forex traders can compare this to the Spanish Markit Manufacturing PMI for August which was reported at 48.8.
- Italian Markit/ADACI Manufacturing PMI: The Italian Markit/ADACI Manufacturing PMI for September is predicted at 48.2. Forex traders can compare this to the Italian Markit/ADACI Manufacturing PMI for August which was reported at 48.7.
- French Markit Manufacturing PMI: The Final French Markit Manufacturing PMI for September is predicted at 50.3. Forex traders can compare this to the previous French Markit Manufacturing PMI for September which was reported at 50.3.
- German Markit/BME Manufacturing PMI: The Final German Markit/BME Manufacturing PMI for September is predicted at 41.4. Forex traders can compare this to the previous German Markit/BME Manufacturing PMI for September which was reported at 41.4.
- Eurozone Markit Manufacturing PMI: The Final Eurozone Markit Manufacturing PMI PMI for September is predicted at 45.6. Forex traders can compare this to the previous Eurozone Markit Manufacturing PMI for September which was reported at 45.6.
- Eurozone CPI and Eurozone Core CPI: The Eurozone CPI for September is predicted to increase by 1.0% annualized and the Eurozone Core CPI is predicted to increase by 1.0% annualized. Forex traders can compare this to the Eurozone CPI for August which increased by 1.0% annualized and to the Eurozone Core CPI which increased by 0.9% annualized.
Here are the key factors to keep in mind today for US Dollar trades:
- US Markit Manufacturing PMI: The Final US Markit Manufacturing PMI for September is predicted at 51.0. Forex traders can compare this to the previous US Markit Manufacturing PMI for September which was reported at 51.0.
- US ISM Manufacturing Index: The US ISM Manufacturing Index for September is predicted at 50.2. Forex traders can compare this to the US ISM Manufacturing Index for August which was reported at 49.1. ISM Prices Paid for September are predicted at 48.5. Forex traders can compare this to ISM Prices Paid for August which were reported at 46.0.
- US Construction Spending: US Construction Spending for August is predicted to increase by 0.5% monthly. Forex traders can compare this to US Construction Spending for July which increased by 0.1% monthly.
Should price action for the EURUSD remain inside the or breakout above the 1.0885 to 1.0965 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0885
- Take Profit Zone: 1.1110 – 1.1160
- Stop Loss Level: 1.0820
Should price action for the EURUSD breakdown below 1.0885 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0820
- Take Profit Zone: 1.0680 – 1.0735
- Stop Loss Level: 1.0885
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