The Eurozone is printing a bunch of PMIs today.
Will it translate to a EUR/USD bounce in the next couple of hours?
Before you place your orders, check out the top headlines that Asian session traders priced in today:
Upcoming Potential Catalysts on the Economic Calendar:
- U.K.’s retail sales at 6:00 am GMT
- France’s manufacturing PMI at 7:15 am GMT
- France’s services PMI at 7:15 am GMT
- Germany’s manufacturing PMI at 7:30 am GMT
- Germany’s services PMI at 7:30 am GMT
- Eurozone’s manufacturing PMI at 8:00 am GMT
- Eurozone’s services PMI at 8:00 am GMT
- U.K.’s manufacturing PMI at 8:30 am GMT
- U.K.’s services PMI at 8:30 am GMT
- U.S. manufacturing PMI at 1:45 pm GMT
- U.S. services PMI at 1:45 pm GMT
What to Watch: EUR/USD
It will be all about PMI during the London session as the U.K., France, Germany, Eurozone, AND the U.S. all print the progress of their manufacturing and services industries.
A quick look at the forex calendar tells us that market players are mostly expecting weaker readings in October. Not good when major Eurozone economies are clocking in record COVID-19 cases, U.K. consumers are already worried about a double-dip recession, and election uncertainty is preventing risk-taking in the U.S.
If today’s PMIs print better-than-expected results, then EUR/USD could bounce from a retest of the 1.1800 previous resistance. The 1.1850 handle is a good enough target given that EUR/USD’s average daily volatility is around 70 pips.
If we see disappointing PMIs, however, then traders could take profits from their higher-yielding bets and favor safe-havens like the dollar and yen. EUR/USD could drop back to its broken range and probably retest the 1.1750 mid-range levels, if not the 1.1700 range support.
This post first appeared on babypips.com
