Forex Signals Brief for July 24: European PMI Data in Focus
Rowan Crosby • 2 min read
Today in Europe we have one of those busy sessions with plenty of data releases. The big focus today is on PMI across the board, however, these days can sometimes be tricky to trade.
The highlight of today will be the German PMI release which is expected to show a slight improvement from the prior month. However, we are also going to be getting data from France and the overall Eurozone.
We already saw the AUD/USD sell-off sharply on some worrying employment figures attached to the PMI release so there is the potential for some action here today.
The fact that these PMI releases are spread out across the morning means we could have a bit of a stop-start session for the EUR/USD.
Out of the US today, we will be watching the SPX as we are in the midst of earnings season and seeing some positive results. While the Greenback continues to rally. The major release of the session will be new home sales, but this is often not a big market mover. While WTI oil inventories will be released later as well.
Forex Signal Update
The FX Leaders Team finished with 2 wins from 3 signals with GOLD offering up plenty of opportunities for us.
USD/JPY – Active Signal
The USD/JPY has been grinding higher over the most recent sessions and that has been driven mostly by the Greenback. We are short here and looking for this one to revert. One weak session for the USD could be all we need.
EUR/GBP – Active Signal
The EUR/GBP was the signal I was most worried about yesterday, headed into the UK leadership vote. But overall the response from the Pound was very much muted. This one is still hanging in there but I’d like to see it hold this key support region.
BTC has dropped the $10,000 level and is now starting to really look a little shaky.
As I pointed out earlier today, this looks to me like a bit of an unwind from the longs after all the positive sentiment from Libra quickly evaporated thanks to the US Government started to cast a net over the entire sector.
If $10,000 can’t hold, then I would expect to see a real breakdown back to $9,000. At that point, we should see some buyers step up.