With both the Eurozone and the U.K. printing PMIs today, I’m keeping close tabs on whether EUR/GBP can maintain its downtrend.
What do you think?
Before I show you what I’m looking at, check out these top headlines from the previous sessions:
- U.S. crude stockpiles fall sharply in week prior to snow storms -EIA
- PBoC: China more focused on money market rates than size of liquidity operations
- New Zealand’s producer input prices remain unchanged in Q4 2020
- Australia’s manufacturing PMI dips to a 2-month low, services hits 4-month low in February
- Japan’s consumer price decline slows, weak demand keeps outlook murky
- Consumer confidence boosted in February as vaccine roll out continues
- Australia retail sales up 0.6% in Jan, COVID restrictions a drag
- Japan’s Feb factory activity expands for the first time in 22 months-PMI
- Oil drops as investors gauge the big chill impact on U.S. refineries
- Asian stocks step back from record highs on rising bond yields, weak U.S. data
Upcoming Potential Catalysts on the Economic Calendar:
- U.K.’s retail sales at 7:00 am GMT
- France’s manufacturing and services PMIs at 8:15 am GMT
- Germany’s manufacturing and services PMIs at 8:30 am GMT
- Eurozone’s manufacturing and services PMIs at 9:00 am GMT
- U.K.’s manufacturing and services PMIs at 9:30 am GMT
- CBI’s industrial order expectations at 11:00 am GMT
- Canada’s retail sales at 1:30 pm GMT
What to Watch: EUR/GBP
Equities and high-yielding currencies slid a bit today after disappointing economic releases from the U.S. cast doubt on the pace of global economic recovery. The Loonie took more hits, though, thanks to the deep freeze affecting refineries operations in the U.S. South and reducing crude oil demand.But that was a few hours ago. London session traders will likely focus on the euro and the pound as the Eurozone and the U.K. print their manufacturing PMIs. What’s more, the U.K. is also set to release its retail sales numbers!
If the U.K.’s numbers don’t line up with the “Blimey! They vaccinate their people so quickly their economy must recover sooner than expected!” optimism, then EUR/GBP could pop back up to the .8700- .8740 Fib retracement area near the SMAs.
But if Britain’s reports fuel the pound bulls, or if the Eurozone’s PMIs come in much worse than expected, then EUR/GBP could extend its downtrend and make new 2021 lows.
Whichever direction EUR/GBP ends up trading, keep in mind that the pair only moves by an average of 45 pips on Fridays. Make sure you’re realistic with your stop loss and profit targets!