Good morning, fellas.

Global markets continue to trade the mixed sentiment as the Chinese government has reported that millions of people have been locked down in two cities to prevent the coronavirus outbreak as the number of dead people increased to 18, and the infected people were recorded above 800. Consequently, traders are moving their funds to safer securities such as Japanese yen and GOLD.

It’s going to be a busy day ahead as the market can exhibit strong volatility in the wake of a series of high impact economic events. A major focus will be on the Eurozone’s manufacturing and services PMI figures. Typically, these events can drive up to 100 pips movement in the market.

Watchlist – Economic Events Outlook

All these events are forecast to show positive growth in the Eurozone. In that case, the bearish trend in Euro can reverse. On the other hand, UK manufacturing figures will also be in focus with a positive forecast. So, these events decide the direction of the market today.

French Flash Manufacturing PMI – The figure is due at 08:15 GMT with a forecast of 52.2 vs. 52.4 during the previous month.

French Flash Services PMI – Besides the French Manufacturing PMI, the services PMI will be observed. It’s expected to soar slightly to 52.1 vs. 52.2.

German Flash Manufacturing PMI – The data will be released at 08:30 GMT with a positive forecast. As you know, Germany is one of the biggest business hubs of the Eurozone, and its manufacturing PMI has started to recover.

The PMI figures are staying below 50, which show slacks in the German manufacturing sector. Throughout 2019, the German manufacturing PMI has dropped gradually remained below 50, exhibiting contraction in the economy.

The economy is expected to show a slight surge in PMI figure from 43.7 to 44.5, which is likely to support the single currency Euro.

German Flash Services PMI – On the other hand, Services PMI is scheduled with a forecast of 53.0, slightly above the previous month’s figure of 52.9.

Flash Manufacturing PMI – At 9:00 GMT, Markit is due to release Flash Manufacturing PMI with a positive forecast of 46.9 vs. 46.3during the prior month.

Although it’s below 50, it may not place any significant impact on the market as speculators have already priced in the 46.9 figure. By any means, if the number crosses 50, we may see some excellent price action in the Euro today.

Flash Services PMI – The flash services is expected to be 52.9, which is slightly above the previous month 52.8 but may not place any significant impact on the market.

ECB President Lagarde Speaks
The European Central Bank President Christine Lagarde is due to participate in a panel discussion titled “Global Economic Outlook” at the 2020 World Economic Forum in Davos. Her speech is due at 9:30 GMT. Volatility isn’t expected as she is likely to discuss general economic issues and areas where improvement can be made.

Good luck today, and see you soon with the next update!