US Dollar Higher, Euro Lower as PMIs are Released

The US Dollar traded to an 11-day high on weak Eurozone PMIs.

The US Dollar traded to an 11-day high at 98.83 as German and Eurozone Manufacturing PMIs came out worse than expected.  German Manufacturing PMI came in at a dismal 43.5 vs 44 expected and the Eurozone Manufacturing PMI was 47 vs 47.3 expected.  In contrast, the US Manufacturing PMI was released at 51 vs 50.3 expected.

Source Tradingview, FOREX.com

As one may expect, EUR/USD is trading lower on the day, however only about .25% at 1.0990, as ECB's President Draghi says he is confident that inflation will converge to target and the labour market is gradually improving.  This is helping to keep the Euro afloat on the day.  EUR/USD is currently trading in a downward sloping channel within a falling wedge.  After putting in a double bottom earlier in the month, the pair could only bounce to the 38.2% retracement level at 1.1115from the June 24th highs to the double bottom lows.  It also couldn’t take out the 50 Day Moving Average near that same level.  EUR/USD is now in danger of taking out the double bottom at 1.0931 and the bottom trendline of the descending wedge near that same level.  Resistance back at the 1.1115 level.

Source: Tradingview, FOREX.com

Below that, we need to start paying attention to the ascending trendline dating back to October 2000.  The trendline comes in near 1.0650, which may not be that far off if EUR/USD breaks the bottom trendline of that descending wedge.

Source: Tradingview, FOREX.com


Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.