Market Watch review.
In today's release, we’ll cover the following topics:
Today, the Eurozone published a report on changes in business activity in the services and manufacturing sectors. The data turned out to be mixed - Germany shows significant growth in the manufacturing sector, which is positive for EUR. While the services sector is signaling significant problems. The largest economies of the currency block show a significant decline in business activity in the service sector, which accounts for over 70% of GDP.
Despite the fact that the data on business activity in the currency block turned out to be mostly negative, recording a decline in the services sector, and the composite index remains below 50 points, the EUR/USD currency pair resumed growth, which is most likely due to the general weakening of the USD.
At the opening of the European trading session, Britain published a report on changes in retail trade volumes, which turned out to be significantly better than previous and projected values. However, demand for GBP remained very weak, and as a result, we saw a moderate weakening of the GBP/USD currency pair.
Closer to the middle of the European trading session, the activity of GBP/USD buyers increased significantly, which was due not to the strengthening of the GBP, but to the general weakening of the USD. Moreover, the publication of a moderately negative report on business activity in Britain exerted only short-term pressure on the pair, keeping it from further growth.
Moving to the US trading session, I will note the low saturation of the news background. However, the focus is still on the election race, which has an incredible impact on financial markets. Thus, the last few trading days, the US stock indices have practically frozen, indicating a clear uncertainty. But even a slight rise in them could weaken the US currency noticeably in the next few days, and perhaps even weeks.
I will finish today's review by analyzing the GBP/USD sell deal of 1 lot. The Sell deal was opened at 1.3160 - this is a strong technical resistance level. Take Profit order was set at the nearest strong technical support level at 1.3070, and Stop Loss order was only 25 points above the opening price. The profit on this deal was $900.
Closely monitor the news background and be prepared for all the surprises of the market.
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