The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
PMI reports on Wednesday will influence EUR, GBP, and USD
What will happen?
Wednesday will please traders as many economic indicators will be out! The USA, UK, and Euro Area will release PMI reports on June 23 from 10:15 to 16:45 MT. The full schedule is presented in the picture below. What to expect? All the countries are gradually recovering from the Covid-19 pandemic crisis, thus, in general, the figures are getting better and better. However, the UK has tightened the social distancing rules as virus cases continue to rise, so its data can come worse.
How to trade on the PMI reports?
The good thing about these releases is that they are easy to interpret.
- If the actual numbers are better than the forecasted, the currency will rise.
- If the releases disappoint, the currency will fall.
One more tip! Ahead of the release, determine support and resistance levels for the pairs that have the needed currency in them (for example, for EU PMI report – EUR/USD). If the difference between the forecast and the actual number is big, the price will likely break those levels.
Instruments to trade: EUR/USD, EUR/GBP, GBP/USD
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
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