October 21, 2022

Warning: PMI on Monday

Michael J. Donoghue
Warning: PMI on Monday

From the hours of 3:15 to 9:45 am Eastern Time on Monday morning, there may be several fundamental catalysts that cause great volatility across the forex market. This prompts us to issue a warning: PMI on Monday. France and Germany, the United Kingdom, and the United States will all be releasing the latest monthly results of their respective Flash Manufacturing Purchasing Managers Index (PMI) and Flash Services PMI, within just hours of each other. These indices, which are composed by surveying purchasing managers across the manufacturing and services industries, are key indicators of economic expansion and contraction, which offers traders a sneak peek at each country’s evolving GDP.

If a set of PMI numbers come in higher than currently forecasted, this will theoretically be bullish for the host country’s currency, whereas numbers that fail to meet forecasts would likewise be bearish. With EUR, GBP, and USD already contending with potential market turmoil from war-related energy crises, upcoming US midterm elections, and UK Prime Minister Truss’ historic resignation yesterday after a mere six weeks in office, Monday’s news may only add more fuel to the fire.

Three Pairs to Watch

While the PMI data could swing in all sorts of directions, holistic economic conditions such as energy access and Fed hawkishness seem to further weigh in USD’s favor. However, given the pullback on recent highs from USD, A1’s EdgeFinder is perhaps signaling more caution than enthusiasm here. Nonetheless, in the context of the potential PMI catalysts, the following three pairs are well worth watching for trade setups. They are listed below with their respective ratings, signals/biases, and their corresponding charts.

1) EUR/USD (Receives a -5, or ‘Sell’ Signal)

Warning: PMI on Monday
Warning: PMI on Monday

2) GBP/USD (Receives a -2, or ‘Neutral’ Signal)

Warning: PMI on Monday
Warning: PMI on Monday

3) EUR/GBP (Receives a -1, or ‘Neutral’ Signal)

Warning: PMI on Monday
Warning: PMI on Monday

A1 Edgefinder

Save time looking for setups with the EdgeFinder's watchlist! In a glance, see the EdgeFinder's current top buys and top sells.

10% off code: 'READER'

Access Now


Trading Plan Template
Struggling to build a successful trading plan? Download our template to get started today!
Smart Money Likes USD and Gold

As of 9:10 am EST, the 10-Year bond rate is up ~3.50% while the dollar index remains flat. Some big news coming up in the next 24 hours for the USD, EUR and AUD. US consumer confidence is expected to fall from the last reading. We received a strange signal from the EdgeFinder that could […]

Read More
Why Gold Is Going Over $2000

This week, we have seen a lot of market swings in sentiment along with uncertainty around economic stability. Because of this mixed mindset, investors have been shifting their interest towards gold. This article will cover why gold could continue to move higher. Medium to high impact news is coming up for all currencies such as […]

Read More
Major Moves Ahead For USD

There are some major news ahead for the EUR, CAD, AUD and USD pairs this week. Wednesday will be another Fed rate decision forecasted to be another 25 bp. Here are some events set to come out tomorrow: EdgeFinder Analysis UC is still the EdgeFinder's favorite buy score along with USDZAR at +7. Retail is […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
homesmartphonelaptopmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram