The European currency is set to go extremely volatile on the release of both the Flash Manufacturing PMI and the Flash Services PMI at 08:00 GMT this coming Friday. Both of these are major indicators of economic health in the Euro-Zone.
The Manufacturing PMI measures the level of a dispersion index that is based on surveyed purchasing managers in the manufacturing industry. The Flash Service PMI measures the level of a dispersion index that is based on surveyed purchasing managers in the services industry.
Better-than-forecasted results are expected to push-up the value of the EUR. This could up the value of the European currency substantially as the European currency is already benefiting from a weak U.S. Dollar. Thus this is an important opportunity to buy the EUR as end-of-week trading kicks in. However, worse-than-forecast results may lead to a bearish EUR. If we look at the EUR so far today, it is trading slightly higher vs. the USD at 1.4250. However, the EUR is trading 15 pips lower against the GBP at the 0.8620 level.
It would be a wise move for forex traders to start opening their EUR positions now, prior to Friday’s release, as this will enable you to make maximum profits. Moreover, if current trends continue, we may see the EUR/USD cross hit 1.4300 anytime soon, as the U.S. economy continues to recover. If you want to start trading forex now, why not open a live account with ForexYard. Furthermore, to learn more about the exciting world of forex please visit our blog in order to start making big money now!
