EU data continues to come in under forecasts as seen today when preliminary PMI data for EU manufacturing and services was released. All three releases came in under estimates and are adding to the weight on the Euro.
|Monday, May 23, 2016|
|04:00||EUR||Manufacturing PMI (May)||51.5||51.9||51.7|
|04:00||EUR||Markit Composite PMI (May)||52.9||53.2||53.0|
|04:00||EUR||Services PMI (May)||53.1||53.3||53.1|
EURUSD continues to test 1.12 as the USD looks to extend its three week bull run. FOMC Member Bullard, Williams and Harker speak today. Bullard is the only voting member speaking and is expected to drop some “hawkish” comments on the people.
Later in the day, US manufacturing PMI will be released with a forecast of 51 and a previous of 50.8. Tomorrow will be quiet in the EU but the US will release April New Home Sales (EST 10:00 estimated 523k, previous 511k).
Where To Enter A Trade For EURUSD
Now is not the time to enter an EURUSD trade because the pair’s fundamentals and technicals do not support it. The ideal level to short would be around 1.14 and EUR bulls should look to get long around 1.10. The USD will continue to need strong economic data to force EURUSD lower. A strong beat on core inflationary data is what the market really needs in order to see the US dollar bull run continue.