The euro remained in a short bearish range on Tuesday where it lost nearly 40 points against the U.S. dollar, as the pressure was built up on the pair due to the unsatisfactory outcomes of the crucial economic indicators from the Eurozone.
The Spanish and Italian manufacturing sector grew less than expected, meanwhile the unemployment change in the German economy was quite disappointing, as nearly 25,000 were laid off last month against the expected ‘growth’ in payrolls by 5,000.
The Eur/Usd is currently trading at 1.3523 before the start of the European session here on Wednesday where a move above its today’s pivot point 1.3536 could lead it to test 1.3548 and 1.3560. The bears are eager to take control of the pair where a move below its critical support level of 1.3500 could drag it down to 1.3484 1.3471 and 1.3459.
Today’s economic indicators for the euro include the announcement of the interest rate of the Eurozone, Spanish unemployment change, and the ECB press conference. Moreover, the ADP Non-farm employment change for the U.S. is also due in the U.S. session.
Crucial Week for Pound
The manufacturing sector of the U.K. economy grew less than expected in the past month, due to which bears took over control and dropped the pair down by 90 points from 1.6260 to 1.6170. Currently the pair is hovering at the 1.6181 level where a move below 1.6165 could take it down to test its next support levels at 1.6145 and 1.6120.
This week is quite important for the overall outlook that is perceived by the investors over this pair because of the release of heavily-relied economic indicators including construction PMI and Services PMI. Construction sector’s growth outcomes are to be released today in the London session, whereas the services sector figures are due tomorrow.
Moreover, the unemployment rate of the U.S. and their non-farm employment numbers would be release this Friday where as usual high volatility would be seen that may end up changing the trends for the pairs.
Gold Drops below 1300
The precious metal dropped down below the psychological level of 1300 yesterday in the U.S. session, where a government shutdown outcome was not taken as a positive sign by the gold traders.
The important fact here is that nearly 76% of U.S. foreign reserves are composed of gold; whereas, on the other hand many billionaires also witnessed huge losses in that single day where millions of jobs especially government level employees are going to face temporary unpaid leave.
To contact the reporter of this story: Jonathan Millet at email@example.com