Today, for a single European currency, there will be a busy day. Firstly, the final data on the index of business activity in the manufacturing sector of Europe is coming out, which should confirm the preliminary estimate and showed the index decrease from 59.6 to 58.5. But a little later, the single European currency will have a chance to recoup due to data on unemployment, whose level should be reduced from 8.7% to 8.6%.
It is then followed by the U.S. statistics. The final data on the index of business activity in the manufacturing sector should confirm its growth from 55.5 to 55.9, but this is the only news that can be regarded as positive. It is expected that the number of applications for unemployment benefits will increase from 222,000 to 226,000, and from 1,875,000 to 1,930,000 from personal income. Alternatively, personal incomes may grow by 0.3 percent and expenses by 0.2 percent. For more than a month, incomes have grown faster than expenditures which indicate growing risks in the economy if combined with an increase in inventories and a decline in orders for durable goods.
The EUR / USD currency pair after the active downward trend has reached the value of 1.2180, which reflects a strong level of support. Now we see consolidation as an attempt to win back the level. They probably assumed a temporary bump, which, perhaps, will play into the hands of buyers as a result of the rollback to the area of 1.2250 / 1.2270. Positions for sale should be considered only after a clear fixation of the price below the level of 1.2150.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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