The euro jumped today after Markit released upbeat economic numbers from Europe. According to Markit, the manufacturing PMI in the eurozone jumped to 46.9 this month from the previous 39.4. This was the highest it has been in four months. The services PMI rose from the previous 30.5 to 47.3, which was also the highest it has been since February. As a result, the composite PMI rose to 47.5 from the previous 31.9. The growth in manufacturing and services sectors was widespread across the region. The manufacturing PMI in France and Germany rose to 52.1 and 44.6, respectively. A PMI figure above 50 is usually a sign that the sector is improving.
The British pound was little changed against the US dollar even after positive developments from the UK. Data from Markit and CIPS showed that the manufacturing PMI rose to 50.1 in June from the previous 40.7. The important services PMI rose to 47.0 from the previous 29.0. The improvement happened as more people went out shopping as the country reopened. The sector is likely to continue improving after Boris Johnson unveiled plans to reopen some key sectors like restaurants, pubs, and museums. Other data showed that retail sales jumped during the month.
Global stocks rose today as hopes of a V-shaped recovery around the world. In a statement yesterday, Steve Schwarzman, the founder and CEO of Blackstone Group said that he expected a V-shaped recovery in the next few months. The same sentiments have been repeated by other investors like Jim Chanos and Bill Ackman. The numbers released today by Markit show that this is possible. Still, the biggest concern is that new infection cases in the United States are rising. Yesterday, the country confirmed more than 26,558 new cases, which is higher than the 16,000 that were confirmed a month ago.
EUR/USD
The EUR/USD pair rose to an intraday high of 1.1311, which is the highest it has been since June 16. On the four-hour chart, the price is above the 50-day and 100-day exponential moving averages. Also, the histogram of the MACD has moved from the lower side. Most importantly, the pair has moved above the descending trendline shown in white. This implies that the price will continue rising as bulls attempt to retest last week’s high of 1.1417.
XBR/USD
The XBR/USD pair rose to an intraday high of 44.0, which is its highest level since early March. The price is above the 50-day and 100-day exponential moving averages on the daily chart. It is also above the resistance line of the ascending triangle pattern and is approaching the 50% Fibonacci retracement level. This means that the pair may continue rising as bulls attempt to test the next resistance at 45.
GBP/USD
The GBP/USD pair was little changed today as traders reacted to UK PMI numbers. The pair is trading at 1.2488, which is higher than yesterday’s low of 1.2431. On the daily chart, the price is slightly below the 50% Fibonacci Retracement level. It is also slightly above the 50-day and 100-day exponential moving averages. The RSI is slightly below the overbought level of 70. Therefore, the pair may continue rising as bulls target levels above 1.2500.
General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
Recommended Content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.