FOREX NEWS: VOLATILITY PICKS UP AFTER LABOR DAY, BRITISH MANUFACTURING PMI EYED
EUR/USD
Forex News: The pair showed slow movement yesterday, mostly because banks across Europe were closed, celebrating Labor Day, and no major indicators were released.
Technical Outlook
Yesterday’s trading session was choppy and doesn’t hold important clues about future direction. For now the pair is in a range but we must note that it moved above 1.0900 and this may bring in additional buyers; however, this is a level that lately didn’t have a lot of importance (price didn’t react to it), so we may easily see a drop below it. The levels to watch remain 1.0950 as resistance and 1.0850 as support and as long as the pair is trading between them, we consider it in a range.
Fundamental Outlook
We don’t have anything major on the economic calendar for the Euro and US Dollar so we might get another slow, ranging session.
GBP/USD
Similar to the Euro-Dollar, the Pound-Dollar moved without clear determination and direction but it remained above the previous resistance, now turned support.
Technical Outlook
Yesterday the pair descended into 1.2905 and bounced higher immediately after touching it, so now the previous resistance has turned into support. It must be noted that the bounce wasn’t a strong one, overall price action lacks strength and volatility is low. Our bias is still bullish as long as the pair is trading above 1.2905 and above the 50 period Exponential Moving Average but we don’t exclude a retracement lower or a ranging session.
Fundamental Outlook
At 8:30 am GMT the British Manufacturing PMI is released, with a forecast value of 54.0, a small change from the previous 54.2. This is a survey derived from the opinions of about 600 purchasing managers, regarding economic and business conditions in the manufacturing sector and acts as a leading indicator of economic health. Usually numbers above expectations trigger Pound strength but the impact is low if the actual number comes close to the forecast.