We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Bearish
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • 🇺🇸 House Price Index MoM Actual: 0.1% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇺🇸 House Price Index MoM due at 13:00 GMT (15min) Previous: 0.7% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇷🇺 Unemployment Rate due at 13:00 GMT (15min) Expected: 5.5% Previous: 4.7% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:💶 ECB Financial Stability Review due at 13:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-05-26
  • 🇺🇸 Chicago Fed National Activity Index Actual: -16.74 Previous: -4.19 https://www.dailyfx.com/economic-calendar#2020-05-26
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/JlAqErwfbP
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.64%, while traders in US 500 are at opposite extremes with 75.09%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/MWeht74N7c
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 1.50% 🇦🇺AUD: 1.39% 🇬🇧GBP: 1.30% 🇪🇺EUR: 0.72% 🇨🇭CHF: 0.62% 🇯🇵JPY: 0.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/LT66cMBc99
  • Heads Up:🇺🇸 Chicago Fed National Activity Index due at 12:30 GMT (15min) Previous: -4.19 https://www.dailyfx.com/economic-calendar#2020-05-26
  • ECB would likely launch infringement procedure against Bundesbank if its stop buying bonds under PSPP - sources
Euro May Fall as PMI Data Sets the Stage for Dovish ECB

Euro May Fall as PMI Data Sets the Stage for Dovish ECB

2018-04-23 03:30:00
Ilya Spivak, Head Strategist, APAC
Share:

TALKING POINTS – PMI, EURO, US DOLLAR, BRITISH POUND

  • Euro may fall as soft PMI data bolsters dovish ECB outlook shift
  • US PMI data unlikely to have lasting impact absent wild surprise
  • British Pound retracing losses after last week’s dramatic selloff

Eurozone PMI data headlines the economic calendar in European trading hours. The composite gauge is expected to show that the pace of manufacturing- and service-sector activity growth slowed for a third consecutive month in April, registering at the weakest in since January 2017. That may reinforce a recent dovish shift in the markets’ priced-in ECB policy expectations, weighing on the Euro.

Later in the day, US PMI statistics will enter the spotlight. A mixed result is expected, with manufacturing sector growth seen slowing while services pick up a bit of steam. On balance, anything shy of a dramatic disappointment seems unlikely to substantively derail the recent build in Fed rate hike speculation, especially while traders await the weightier first-quarter GDP print due Friday to make firm US Dollar bets.

The British Pound corrected higher as the trading week began. The move seems corrective after last week’s bloodletting. Sterling hit the lowest level in a month against an average of its top counterparts after inflation data underwhelmed and comments from BOE Governor Mark Carney cooled rate hike speculation. The priced-in likelihood of a May increase is now 42.8 percent, down from 96.2 percent one week ago.

See our quarterly FX market forecasts to learn what will drive prices through mid-year!

Asia Pacific Trading Session

Euro May Fall as PMI Data Sets the Stage for Dovish ECB

European Trading Session

Euro May Fall as PMI Data Sets the Stage for Dovish ECB

** All times listed in GMT. See the full economic calendar here.

FX TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

To receive Ilya's analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.