European Equities: Trade War Jitters Expected to Pin Back the Majors
The Day Ahead
Economic data is on the heavier side in the day ahead. Manufacturing PMI numbers out of Spain and Italy are due out alongside finalized PMI numbers for France, Germany. and the Eurozone.
In spite of better than expected China PMI numbers earlier in the day, today’s numbers are going to need to impress to provide support.
The Asian equity markets struggled through the early part of the day, as trade war jitters continued to weigh. Trump’s latest threat raises the stakes and suggests that the EU could be next on the trade warpath…
Sliding U.S Treasury yields and a stronger EUR will also add pressure on the majors through the day.
For the bulls, a jump in U.S manufacturing activity would ease some of the market anxiety, though it may not be enough to reverse any losses in the early part of the day
According to TRADING CENTRAL the EUR/USD may fall:
Short positions below 1.1180 with targets at 1.1150 & 1.1135 in extension
Above 1.1180 look for further upside with 1.1190 & 1.1200 as targets
EUR/GBP May fall 40-60 PIPS as long as 0.8871 is resistance look for 0.8780
As long as 0.8871 is resistance look for 0.8780
The upside breakout of 0.8871, would call for 0.8904 and 0.8924
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