0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
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
Oil - US Crude
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
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.49% FTSE 100: 0.39% Germany 30: 0.36% Wall Street: -0.00% US 500: -0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/10tyQ8ES71
  • The Japanese Yen responded to a key technical barrier last week with and leaves the bears vulnerable early in the month. Get your $USDJPY technical analysis from @MBForex here: https://t.co/ijElJvmHyn https://t.co/Xv7pVMQ6h4
  • Trump to announce 10% tariff on Canadian Aluminum - BBG
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 5.25% Gold: 0.99% Oil - US Crude: 0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/gpka4HBCay
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.03%, while traders in US 500 are at opposite extremes with 76.79%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/FfFR6kxBCO
  • Ahead of the RBNZ rate decision next week, the New Zealand Dollar has struggled to climb higher against its major counterparts, with the exception of the US Dollar. Get your market update from @JMcQueenFX here:https://t.co/iZxV2qSVrw https://t.co/CGE3WeJ3Yl
  • U.S. State Department lifts travel advisory for all international travel - BBG
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.21% Wall Street: 0.20% France 40: 0.10% Germany 30: 0.06% FTSE 100: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/uCGMUoQfxx
  • Senator Collins 'still optimistic' on stimulus deal - BBG
  • Update on #Cryptocurrencies #BITCOIN +1.33% #BITCOINCASH +5.60% #ETHEREUM -0.07% #RIPPLE +1.08% #LITECOIN +1.63%
EUR/USD Price Chart: Euro May Fall on PMI Data, Trade War

EUR/USD Price Chart: Euro May Fall on PMI Data, Trade War

2019-11-22 08:00:00
Dimitri Zabelin, Analyst
Share:

Euro, EUR/USD, Trade War – Talking Points

  • EUR/USD may undergo selling pressure if Eurozone PMIs incite ECB rate cut bets
  • Euro decline may be amplified from the resurrection of EU-US trade war hostilities
  • What were key takeaways from ECB minutes, are officials optimistic or distressed?

Learn how to use politicalrisk analysis in your trading strategy!

EUR/USD may continue its descent if Eurozone PMI data underwhelms and supports the case for future liquidity provisions from the European Central Bank (ECB). Resurrected US-EU trade war tensions will likely cast doubt over the ability of the manufacturing sector to recover from its wounds amid the US-Sino conflict. EUR/USD failure to break above key resistance opens door to key support at 1.1022.

Eurozone Economic Data May Catalyze EUR/USD Selloff

Preliminary Eurozone manufacturing PMI data for November is expected to show a 46.4 figure, slightly higher than the prior 45.9 print though still in contractionary territory; any reading above 50 indicates an expansion. Services is anticipated to a 52.4 reading while the composite is pegged at a 50.9 estimate, with the precious reports at 52.2 and 50.6, respectively.

The comparatively stronger growth in the services sector relative to the contraction in manufacturing helps keep the composite PMI index above the 50 mark. However, if industrial production continues to slide, it could eventually bleed into services and draw down the overall performance in the composite index. The spillover in industrial weakness has been a growing concern among central bank policymakers.

ECB Minutes: Main Takeaways

ECB Vice President Luis de Guindos said that a recession in the Eurozone was “very improbable”, though he did note that risks to the region’s economic prosperity remain tilted to the downside. The central bank’s meeting minutes also noted that no-deal Brexit concerns have waned, and this has helped buoy sentiment and restore cautious confidence in producers.

However, officials noted that they expect growth in the Eurozone to remain subdued for a prolonged period of time. The slowdown may be amplified by external factors like the US-China trade war as a result of the global chilling effect it has on world growth. However, now that the EU and US may not enter their own direct trade-related conflict, the prospect of upside inflationary pressure and economic activity is put at risk.

EUR/USD Technical Analysis

As forecasted, EUR/USD failed to break above key resistance at 1.1073 and is now trending lower, opening the door to test support at 1.1022. Traders may wait for another daily close in the red before adding to their short positions, though the more prudent ones might wait until the pair clears support at 1.1022 with follow-through. A break below there could mark the resumption of EUR/US’s dominant downtrend.

EUR/USD – Daily Chart

Chart showing EUR/USD

EUR/USD chart created using TradingView

EURO TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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

DISCLOSURES

News & Analysis at your fingertips.

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.