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03.12.2021: What traders prefer buying ahead of weekends? Outlook for EUR/USD and GBP/USD

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Global uncertainty is growing, thus forcing traders to switch to safer assets. Investors should also take into account reports on the current economic condition. In our video review, we will find out how the recent reports have influenced the euro and the pound sterling.
Surprisingly, the eurozone final PMI data turned out to be well below the forecast. Nevertheless, the indices are still rising, though at a slower pace. In particular, the services PMI increased to 55.9 points from 54.6 points, instead of climbing to 56.6 points. The composite PMI inched up to 55.4 points from 54.2 points, whereas analysts had foreseen a rise to 55.8 points.
In the UK, the situation is almost the same. There, the services PMI dropped to 58.5 points from 59.1 points, instead of falling to 58.6 points. The composite PMI declined to 57.6 points from 57.8 points. Economists had predicted a smaller decrease to 57.7 points.

Although the eurozone retail sales data exceeded the forecast, the report could hardly be called positive. Retail sales advanced by 1.4% after a rise of 2.6% in the previous period. The final data beat the forecast of just a 1.0% increase. Nevertheless, consumer activity that is the main driver of economic growth is still falling. There is no wonder that the euro and the pound sterling began losing value.
The currencies are likely to continue falling at even a faster pace. The fact is that the US Labor Department report is expected to be absolutely positive. In the worst-case scenario, the US unemployment rate will remain unchanged. However, it is highly likely to slide to 4.5% from 4.6%. In fact, a stable unemployment rate is already a positive sign especially amid the US dollar appreciation.
In addition, non-farm employment may add 550 thousand jobs. This is 19 thousand more than in the previous month. What is more, the figures three times exceed the rise necessary for a stable unemployment level. It means that unemployment may decline more in the near future.

Let us take a look at the trading charts ahead of the publication of the US reports.
The euro/dollar pair was hovering within the range of 1.1300 and 1.1355 for 40 hours and then broke its lower limit. This points to the bearish market sentiment.
A downtrend still prevails on the daily chart. We see that the pair entered the correctional phase and then stagnated.
If the price fixes below 1.1300 on the four-hour chart, it may slide deeper. In this case, the euro may gradually drop to the local low of 1.1235 logged on November 30, and then to the area of 1.1160/1.1180.
The alternative scenario will become possible, if the pair resumes trading within the range of 1.1300/1.1355.
Although the pound/dollar is trading within the sideways channel of 1.3290/1.3350, the market sentiment remains bearish. This is proved by the price's regular decline below 1.3290.
In this case, the pair needs both the fixation below 1.3290 and a surge in speculative activity, boosted by a news flow. This will allow the pair to touch the local low of 1.3194.
The alternative scenario will become possible after a sharp change in the market sentiment, for example, if the price consolidates above 1.3370.
00:00 Intro
00:20 EUROZONE PMI
00:50 UK PMI
01:17 EUROZONE RETAIL SALES, Y/Y
02:47 EURUSD
03:47 GBPUSD
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