How many times have you seen us complaining about the forex market in the recent months? Quite often right? That´s because politics have interfered heavily in the market, while the economic data has become quite irrelevant.
Yet in the last couple of days we´ve seen some action after economic releases. Yesterday, the Pound jumped about 60 pips on the positive UK retail sales, despite Article 50 and Brexit coming into reality next week.
Today the Eurozone manufacturing and service reports were upbeat as well. We have seen some impressive economic data from Europe recently, but it´s been unsuccesful in moving the market.
Today, the Euro jumped around 30-40 pips after the release. So is the economic data back in this forex game? We can't know yet, but we must keep an eye on it. We need to specifically keep an eye on the numbers coming from Europe because the case for a rate hike by the ECB is strengthening.
By the way, our forex signal in this forex pair seems OK at the moment. The buyers look weak above 1.08 and the previous hourly candlestick just closed as an upside down pin, which is a reversing pattern. The stochastic is oversold, so our fingers are crossed.