EURUSD, H4
Eurozone June services PMI revised up to 52.8 from 52.4. But this still left the reading down from 53.3 in the previous month. Spanish and Italian readings in particular surprised on the upside but the French services number remains stuck in contraction territory, as did the composite reading. The Eurozone composite PMI was unchanged from May, after the upward revision to manufacturing and services readings and still points to ongoing expansion, but while the data confirms that activity picked up again toward the end of the second quarter, the readings don’t capture the impact of the Brexit referendum yet and as such are already outdated to some extent.
EURUSD traded as high as 1.1184 before reversing to 1.1145. In the 4 hour chart support is being provided by the 20 period MA, and resistance by the upper Bollinger band as the pair trade in a tight upward sloping range.
The numbers from the UK were down to 52.3, missing expectations (53.1) and down from last time significantly (53.5). This weaker number for June again does not reflect the Brexit impact (as 89% of data was collected before June 23rd) but will only add to the gloomy outlook. At 52.3 the figures matches the April figure which was a 38 month low. Growth over the whole of the second quarter was the weakest since the first quarter of 2013. Given the post-Brexit political mess and uncertainty, which will be continue for a considerable time, there is a high risk that the UK economy will slip into recession in the second half of the year.
Sterling continues to weaken and trades at 1.3130 against the USD (a post Brexit Low) and EURGBP at a post Brexit high of 0.8486.
Janne Muta
Chief Market Analyst
If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:
http://www.topforexbrokerscomparison.com
About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.