EURUSD:
On Wednesday, the EUR/USD exchange rate experienced a slight decline of around one-tenth of a per cent, as financial markets observed a lull between significant data releases for the week.US President Donald Trump’s recent shift in tone, away from constant trade war rhetoric and threats of import taxes on his citizens, has provided a respite for markets, which had been experiencing heightened anxiety.
On Thursday, as was the case on Wednesday, the market will begin with a limited release of data, with the US Federal Reserve (Fed) entering its usual period of ‘black’ time ahead of next week’s rate announcement.The European Central Bank (ECB) is not in a position to take such a period for itself, but at present there is little that policymakers can say that will significantly change the market outlook. On Wednesday, ECB President Christine Lagarde made a statement that went largely unnoticed.Traders will have to focus on Friday’s Purchasing Managers’ Activity Index (PMI) data, which will be released in both the EU and the US.This week’s EU and US PMI business activity survey results for January are expected to be mixed. The service sector is predicted to experience a decline or remain stagnant, while manufacturing indicators are expected to show modest improvement.PMI data typically exerts minimal influence unless it deviates from forecasts. However, it should be noted that the number of respondents in a survey is generally limited, and the overall figures should be interpreted with caution.
Trading recommendation: We follow the level of 1.0400, if it is fixed above we consider Buy positions, if it bounces back we consider Sell positions.
Origin: FreshForex
