Octa | Apr 23, 2018 02:56AM ET
Economic data is in the spotlight again on Monday, with PMI reports from Europe and the United States set to generate significant headlines for currency traders. The reports on manufacturing and services will kick off what’s expected to be a highly active week in the markets.
The first PMI report of the day will be released at 07:00 GMT courtesy of Markit. The French manufacturing, services and Composite PMI indicators are due at that time. Composite PMI essentially reflects the combined services and manufacturing components of the monthly survey.
PMI data for Germany is scheduled for release at 07:30 GMT. The Composite indicator is forecast to ease to 57.6 in April from 58.2 the previous month.
A report on the Eurozone’s Composite PMI is scheduled to come in at 08:00 GMT. The April reading is expected to come in at 54.2, down from 55.2 in March.
Shifting gears to the United States, the Chicago Federal Reserve Bank will release its National Activity Index at 12:30 GMT. The monthly indicator for March is expected to come in at 0.41, which is less than half of the February reading.
At 13:45 GMT, Markit will release three PMI indicators for the United States covering services, manufacturing and the broader economy (Composite). The Composite indicator is projected to strengthen to 55.3 from 54.2 the previous month.
US housing data will also make headlines Monday when the National Association of Realtors (NAR) reports on existing home sales. March sales are forecast to rise 1.3% to a seasonally adjusted 5.55 million. That follows a gain of 3% the month before.
North of the border, the Canadian government will report on wholesale sales at 12:30 GMT, although the report isn’t expected to generate much headlines.
EUR/USD
Europe’s common currency continued lower on Monday, with prices falling to the low 1.2270 US range. EUR/USD has been in decline since Wednesday; over that period, the exchange rate has dropped more than 100 pips. The currency pair faces immediate resistance at 1.2300. On the opposite side of the spectrum, support is located at 1.2260.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.