EUR/USD Price Chart: Euro May Fall on PMI Data, Trade War
The weekly chart is used to give us an idea of the longer-term prospects that includes the coming months. The daily chart is used to give us an indication of the prospects for the medium term, defined as the next week to a month before. It shows more clearly how the pair has increased to the top of the fall channel where the trend line is and 200 days of moving average (MA).
The Japanese currency traded in an extremely tight range with a soft bias in recent trading sessions. The single currency may show a short rebound coverage from successive oversold levels, but rumor in the ECB meeting the polarization is clearly bearish. For its part, it has managed to offset losses against rising anti-risk alternatives such as the yen and the US dollar, with long-term support against sentiment-oriented FX, such as the Zeeland Dollars Australia and New.
As for PMI services, the data that is influenced by consumer buying behavior may draw particular attention after July’s CPI harmonized inflation headline has been revised downwards on Monday, highlighting the lack of demand. In contrast, data from Europe has been poor. incoming economic data could help justify political support. Back in the euro area, updated GDP data, a survey of German companies, and Italian political issues will compete for attention with the American consumer.
Going forward the market expects to see good volatility during the news is compiled into trading sessions throughout the week. The stock markets collapsed, and investors fled for the security of bonds. Markets are prepared for rate cuts in the second half of the year. US markets are closed for the Labor Day party. With this in mind, the market will probably continue to focus on global economic growth and how trade tensions could affect it. Bond markets are now indicating a 100% certainty that the Federal Reserve will cut rates by 25 basis points again in September and also the possibility of a 50bp reduction. Other raw materials saw a sharp decline as well.
As the price entered the lower horizontal range so did it in a descendant from which a break was made when the price pushed upward. It is still in a downward trajectory as the decline since November 4th has not yet fully developed. Even if prices are weak in the short term, I know it will be much, much higher in the medium term and longer. physical prices now command a 10-20% premium to identify paper prices, the highest in recent years. German export production sales and new orders grew at their slowest pace in more than two years in June, a survey showed on Monday, adding to the signs of the industry is cooling fears of a global cloud true trade war economic prospects.