After the Australian and Japanese PMI reports disappointed, forex traders will focus on this morning’s wave of Eurozone PMI’s. Economists predict an overall weakening across the board in another sign that the global economy is sliding into a recession. The ECB is exploring new stimulus, but did Germany hint it may be open for its own fiscal stimulus package after its economy contracted in the second-quarter? How will this impact the EURUSD which is trading at key support? Today’s fundamental analysis will explore the upside potential as well...
The Australian Dollar hovered near support levels despite a surprise drop in the CBA Services as well as Composite PMI’s for August. This morning’s data was the latest sign that the global economy extends it slowdown which has increased hopes for more stimulus around the world. The AUDJPY pushed above its horizontal support area as bullish momentum rose. Can this breakout lead to more upside potential in this currency pair. Subscribe to the PaxForex Daily Fundamental Analysis and join one of the fastest growing trading communities in the forex...
A relatively quiet trading day as far as fundamental data is concerned, forex traders will eagerly await minutes from the last FOMC meeting where the US central bank cut interest rates by 25 basis points. The US Dollar remained at elevated levels and with markets pricing in more interest rate cut, can the current strength continue or should forex traders prepare for a sell-off? Existing home sales out of the US could also move price action as the housing market, a prime source for the consumer wealth effect which drives spending, has been...
As financial markets have calmed down over the past few sessions amid hopes for more central bank stimulus across the globe, the Euro has started to stabilize at strong support levels. Economic data this morning will feature German PPI which is anticipated to show the absence of inflationary pressures as well Eurozone Construction Output which is likely to show further economic stress. The ECB is planning what type of stimulus to apply to the economy and when, but forex traders have already priced in a dovish ECB. Will the EURCHF rally off of...
Safe-haven currencies such as the yen and the Swiss franc are under pressure on Monday morning amid expectations from politicians of new incentives that could reduce investors concerns about a slowdown in the global economy.
