Today’s German IFO report is expected to move forex and commodity markets alike. Germany barely avoided a technical recession in the third quarter, but the second-quarter was revised lower. With a fragile Eurozone economy, German data has become more sensitive at a time the German finance ministry believes there are no issues that require more fiscal spending by governments. How will Silver react to a surprise reading in the IFO data? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
UK CBI data will be eagerly anticipated as the holiday shopping season is approaching with elections in the way. A pair of US regional reports, both expected to show a contraction in their respective regions, could result in a volatility spike during today’s trading session. US-China trade negotiations will additionally play a key driver in the commodity sector, but safe-haven assets such as Silver could have a strong finish to the year. What impact will US economic data have on price action? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.
Here are the key factors to keep in mind today for Silver trades:
- German IFO: The German IFO Business Climate Index for November is predicted at 95.0. Forex traders can compare this to the German IFO Business Climate Index for October which was reported at 94.6. The German IFO Current Assessment Index for November is predicted at 97.9. Forex traders can compare this to the German IFO Current Assessment Index for October which was reported at 97.8. The German IFO Expectations Index for November is predicted at 92.5. Forex traders can compare this to the German IFO Expectations Index for October which was reported at 91.5.
- UK CBI Reported Sales and CBI Total Distributed Reported Sales: UK CBI Reported Sales for November are predicted at -11 and CBI Total Distributed Reported Sales are predicted at -10. Forex traders can compare this to UK CBI Reported Sales for October which were reported at -10 and to CBI Total Distributed Reported Sales which were reported at -21.
- Mexican Economic Activity IGAE: The Mexican Economic Activity IGAE for September is predicted to decrease by 0.60% annualized. Forex traders can compare this to the Mexican Economic Activity IGAE for August which decreased by 0.85% annualized.
- Canadian Wholesale Trade Sales: Canadian Wholesale Trade Sales for September are predicted to increase by 0.1% monthly. Forex traders can compare this to Canadian Wholesale Trade Sales for August which decreased by 1.2% monthly.
- US Chicago Fed National Activity Index: The US Chicago Fed National Activity Index for October is predicted at -0.20. Forex traders can compare this to the US Chicago Fed National Activity Index for September which was reported at -0.45.
- US Dallas Fed Manufacturing Activity Index: The US Dallas Fed Manufacturing Activity Index for November is predicted at -3.8. Forex traders can compare this to the US Dallas Fed Manufacturing Activity Index for October which was reported at -5.1.
Should price action for Silver remain inside the or breakout above the 16.650 to 17.200 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 16.850
- Take Profit Zone: 19.250 – 19.600
- Stop Loss Level: 16.400
Should price action for Silver breakdown below 16.650 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 16.400
- Take Profit Zone: 15.150 – 15.500
- Stop Loss Level: 16.650
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Do you trade with one of the most trusted MT4 forex brokers? Sign-up with PaxForex today and join one of the fastest-growing trading communities in the forex market.
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5
