The single currency of the European Union region fluctuated in a narrowly bullish range during the Asian session to see its rebound to its second-lowest session since June 20 against the US dollar on the brink of economic developments and data expected Wednesday by Eurozone economies and the US economy. In the world.
At 4:34 am GMT, the EURUSD rose 0.04% to 1.1289, compared to the opening at 1.1285, after the pair reached a high of 1.1295 and a low of 1.1284.
The markets are looking for Spain, the fourth largest economy in the euro zone, to reveal the PMI service index, which may show a contraction of 52.7 versus 52.7 last May, before we see the same indicator for Italy, the third largest economy in the region. The stability of the widening at 50.0 was unchanged from May.
Investors are also looking for France, the second-largest economy in the euro area, to reveal the final reading of the PMI index, which may show the stability of the widening at 53.1 unchanged from the previous reading of the previous month, compared to 51.5 in May, before the final reading of the same index of Germany's largest economies Region, which may also show the stability of the widening at 55.6, unchanged from the previous preliminary reading, from 55.4 in May.
To show the final reading of the PMI for the Euro-Zone as a whole, which may show the stability of the widening at 53.4, unchanged from the previous reading, versus 52.9 in May. Otherwise, we followed yesterday the ECB member Philip Lin expressed interest rates The current low is temporary but will last for some time, and the ECB has not reached the inflation target which supports the expansion of monetary easing.
On the other hand, the markets are currently waiting for the US economy to release preliminary data for the labor market with the publication of the index of change in private sector jobs, which may reflect the acceleration of job creation to 140 thousand added jobs compared with 27 thousand jobs added in May, before Hours of detection on Friday of the monthly report of non-farm jobs and unemployment rates in addition to the average hourly income for the last month.
This comes ahead of the June 29 reading of the Jobless Claims Index, which may reflect a drop of 7K to 220K. The ongoing Jobless Claims Index for the week ending 22 May may also show a decline of 7K To 1,681 thousand, with the release of the trade balance, which may reflect a widening deficit to $ 53.2 billion versus $ 50.8 billion in April
Leading to the final reading of the index of the Institute of Supply Services by Markit for America, which may reflect the stability of the expansion at 50.7, not significantly changed from the initial reading and compared to 50.9 in May, before the disclosure of the index of the Institute of Supply Service, which may show a contraction of breadth to 56.1 compared to 56.9 in May, in conjunction with a factory demand reading, which may indicate a contraction of the decline to 0.4% versus 0.8% in April.
Otherwise, at the weekend, we followed the report of the US administration's proposal to impose US $ 4 billion in import duties on the United States. In the same vein, US Trade Representative Robert Leahyzer said that Washington wanted to punish Brussels for granting it In support of European aircraft maker Airbus, which gives it a competitive edge at the expense of Boeing.
Technical Analysis
The EUR/USD pair showed positive attempts yesterday but rebounded to settle near 1.1280 again. The bearish scenario remains valid for the coming sessions, supported by the negative pressure formed by the SMA 50, awaiting targeting of 1.1235 and 1.1180 as next major stations.
Stochastic is providing a negative signal to support the bearish outlook, while stability below 1.1350 is an important condition for the continuation of the suggested bearish bias.
The trading range for today is expected between 1.1200 and 1.1350 support.
The general trend for today is bearish.