Today we will se a day full of data, especially a lot of service PMI for almost all major currencies. This could cause a lot of volatility today.
EUR/USD Possible correction to 1.098
Yesterday the euro droped below the support at 1,101 down to 1.094, and today we could see a correction with 1.098 as target. But In the euro area 4 different service PMI will be published, and overall no change to the last month is expected. If the results are not much better than expected, they won't have a big influence on this pair. I addition ECB President Mario Draghi will speak at 10:00h (CET), and his statement had yesterday already caused the drop of the single currency. So if the PMI data are not exceptional good, the pair could hold its direction with 1,090 as the first target. This could be supported by the data from the United States economy.
GBP/USD Some volatility expected
Yesterday the construction PMI, which hit exactly the forecast, could not convince the investors and the pair went down to 1.536. Because the US-Data were also not convincingly, we saw a rebound to 1.542. Today the situation is similar, but more US-data are expected. In the UK the Halifax Index will be published at 9:00am CET, and at 10:30am. Both are expected a little bit higher. In the United States the non-farm payrolls are expected at 14:15h CET, the services PMI at 15:45 CET and the FED Chair Janet Yellen speaks at 16:00 CET. So there will be many nice trading oppotunities in this pair.
USD/JPY Still waiting to rise
The requirements for this two currencies are as different as they can be. While in vestors are waiting for the higher interest rates in the United States, they are waiting for the next financial injection to help the Japanese economy. This said, we have seen a correction this morning, down to the support level at 121.05, but the uptrend should still be solid. If there is any sign in the speech of Janet Yellen today, for higher inteset rates in the coming December, the pair coud rise with 121.70 as target.
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The opinions of the author to market behavior do not constitute a solicitation to buy or sell any financial products, but are merely a personal opinion. When you go into the trade in leveraged financial products, you must be aware that a loss up to the amount of your deposit and in addition, can also be an obligation to arise. Make yourself familiar with the active trade or get independent advice before you invest your own money and use only invest money that you can get over the worst case.