EUR/USD Daily Forecast – 02 February

From Eurozone, yesterday, Spanish and Italian Manufacturing PMI data was released. Latest PMI data signalled a strong start to the year for Spanish manufacturing firms as new business rose at the fastest pace since February 2007, supporting sharper production growth. Higher workloads led to a pick-up in the rate of job creation, while positive expectations regarding future new orders encouraged firms to increase inventories. Meanwhile, falling raw material prices resulted in the sharpest decline in input costs since July 2009. The seasonally adjusted Markit Spain Purchasing Managers’ Index increased to 55.4 in January from 53.0 at the end of 2015, thereby signalling a stronger improvement in business conditions than in December. In fact, the health of the sector strengthened to the greatest extent since May last year.

EUR/USD Daily Forecast – 02 February

Euro was pushed higher in the course of the Monday's session, going all the way to 1.09 handle, where it found some amount of resistance. There were no major data releases so this uptrend is just a continuation of recent consolidation. As for tomorrow, any type of supportive candles around 1.08 handle would offer short-term buying opportunity, while resistive candles around 1.0950 level would be short-term selling signal. Read more...

Spanish Manufacturing PMI up, Italian down

EUR/USD Daily Forecast – 01 February

Friday brought Spanish CPI and GDP figures, as well as M3 Money supply and Eurozone CPI data, Consumer price inflation in Spain fell more-than-expected last month, official data showed on Friday. In a report, Instituto Nacional de Estadistica said that Spanish CPI fell to -1.9%, from -0.3% in the preceding month. Analysts had expected Spanish CPI to fall -1.5% last month. Spain’s gross domestic product rose last month. In a report, Instituto Nacional de Estadistica said that Spanish GDP rose to 0.8%, from 0.8% in the preceding month. Analysts had expected Spanish GDP to rise 0.8% last month.