EURUSD:
On Thursday, the EUR/USD exchange rate made a partial recovery, rebounding by four-tenths of a percent to reach 1.0800. Despite a rebound at the end of the week, the Fibonacci retracement remains well below recent highs, having dropped by over four per cent from late September peaks near 1.1200.
The pan-European purchasing managers’ index (PMI) data from HCOB on Thursday showed a mixed picture, with the October EU manufacturing PMI rising to 45.9 from 45.0 in the previous month, beating expectations of 45.1. Meanwhile, the October EU Services PMI declined to 51.2, down from the previous reading of 51.4 and below the projected increase to 51.6.
The euro’s presence on this week’s economic data list is limited, with only marginally significant data scheduled for release on Friday. Markets will have to contend with US durable goods orders and an update on expectations for 5-year consumer inflation from the University of Michigan (UoM). It is anticipated that US Durable Goods Orders will decline by 1.0% in September compared to the previous month, representing a continuation of the recent downward trend observed in August, when there was a 0.0% drop. The October 5-year UoM consumer expectations are expected to be in line with the previous reading of 3.0%.
Trading recommendation: Trading predominantly Buy orders from the current price level.
Origin: FreshForex
