- DE30 anticipating crucial PMI data
- EURUSD watching PMIs, US retail sales
- Inflation and wage data important for GBPUSD
DE30 tumbled last month following a very weak manufacturing PMI from Germany but it remained in a strong upwards trend, recovered the losses and moved higher as stronger data from China and dovish central bankers provided a relief for investors. This week the German PMIs (Thursday, 8:30am BST) will be absolutely crucial for this market. For now it’s hard to match a recessionary report from German industry with a stunning rally on DE30.
DE30, empowered by a reverse head-and-shoulders formation, remains in a steep upwards trend. Source: xStation5
The PMIs on Thursday will be crucial for the EURUSD as well but here investors will take a broader look, considering all European PMIs (Thursday morning) but also the data from the US: retail sales and flash PMIs (Thursday, 1:30pm and 2:45pm BST). EURUSD is attempting to form the double bottom formation that could be crucial for the pair.
EURUSD attempts to form a double bottom formation. Will it lead to a break-out from a wedge? Source: xStation5
A longer extension granted to the UK last week seemed to reduce the risk of Hard Brexit but lack of clarity regarding the path ahead saw subdued reaction on GBPUSD. The pair is in a tight consolidation and while the politics will remain dominant on this market, traders should also pay attention to the macro reports: wage data on Tuesday and inflation on Wednesday (both 9:30am BST).
GBPUSD remains in a tight consolidation. Will the macro data provide a much needed impulse? Source: xStation5