Partner Center Find a Broker

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:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Upcoming Potential Catalysts on the Economic Calendar:

What to Watch: EUR/GBP

EUR/GBP 1-hour Forex Chart
EUR/GBP 1-hour Forex Chart

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!