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)
2) GBP/USD (Receives a -2, or ‘Neutral’ Signal)
3) EUR/GBP (Receives a -1, or ‘Neutral’ Signal)
Smart Money Tracker
See where big money is flowing with the A1 Edgefinder's smart money tracker! With one click, see where the biggest money flows are entering and exiting through COT data.
While today is relatively uneventful in terms of major economic news around the world, this will not be the case for long. There is a chance that the forex market could witness a Kiwi Dollar spike tomorrow due to the Reserve Bank of New Zealand (RBNZ) announcing their latest interest rate hike at 8 pm […]
As many of you already know, the EdgeFinder, A1 Trading’s market scanner software, can be incredibly helpful for discerning which securities are especially worth watching for potential trade setups. Whether you are planning on buying or selling a currency pair, commodity, bond, or more, EdgeFinder analysis is so robust that its ratings and biases can […]
This morning at 2 am Eastern Time, the Office for National Statistics reported the latest monthly round of Consumer Price Index (CPI) and Core CPI increases within the United Kingdom’s economy. Annual CPI, which had been forecasted to hit 10.7%, instead jumped by an astonishing 11.1%, making for another multidecade high; annual Core CPI also […]
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