Global macro overview for 21/09/2018

The PMI reading for the Eurozone confirmed what was obvious after the data from Germany and France was published. The mood in the industrial sector has deteriorated, which is not beginning to be reversed. It is just the opposite. The index for Eurozone dropped from 54.6 to 53.3 points (versus a forecast of 54.5 points).

The Eurozone Composite Purchasing Managers Index (PMI) assesses business conditions in manufacturing, construction and service sectors. The Eurozone PMI is both a significant and timely indicator of business conditions and the general health of the economy. Close correlation with the business cycle, assessed on the basis of long-term statistical data, allows using the PMI indicator for prognosis of future GDP volumes. The PMI indices are based on selected panels of executives in companies who report each month on real events. The subindex of intangibles sector - PMI services - is of more importance because in industrialized countries around 70% of GDP is generated in the non-manufacturing sector.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. Such weak data cool down the eagerness to buy the euro across the board. EUR / USD went down to 1.1770, or about 40 pips under the daily highs, which is the nearest resistance (the next is at the level of 1,1850). The technical support is seen at the level of 1.1740-50 and then at the level of 1.1655. It will be very important weekly candle close and the key level of interest is the area of 1.1750, where demand should be activated.

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The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 21/09/2018

Statistics Canada reports that the Canadian Retail Sales in July are growing by 0.3% in monthly terms to the level of $ 50.9 billion due to higher sales of food, beverages and fuels. Market measurements that exclude the most volatile components of sales turned out to be much more important for the market. In this perspective, the retail sales ratio grows by 0.9% m / m - well above forecasts of 0.6%.

Stronger retail sales are emphasized by sufficiently high CPI. Consumer inflation on an annual basis is growing in August by 2.8% compared to the previous year, which is a value consistent with the market consensus. The change in monthly terms indicates a slight (0.1%) decline in the index.

Let's now take a look at the USD/CAD technical picture at the H4 time frame. Surprisingly good data and the return of the Canadian minister to the US in order to continue trading talks make bulls buy CAD-related pairs across the board. In the first minutes after the publication of today's report, USD/CAD tested the region of yesterday's low, where the USD buyers emphasized their presence. The pair has been in a clear downward trend for quite some time. The nearest technical support is seen at the level of 1.2887.

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The material has been provided by InstaForex Company - www.instaforex.com