EURUSD will likely be the most active pair this week, with a vast collection of economic data arriving.
EURUSD – Daily Chart
EURUSD was trading at 1.0837 ahead of Sunday’s open, and the euro will be looking to hold this price support for a further rally.
The data will start on Tuesday at 11 pm HKT with ISM Services PMI, and that is expected to slip from 53.4 to 53 but would still be well above the 50 level, which marks expansion or contraction.
The following day, Federal Reserve Chair Jerome Powell will bring testimony to Congress. The European Central Bank will release its interest rate decision on Thursday, with a press conference ahead of Powell’s second day of testimony.
Finally, Friday will bring 3Q GDP growth figures for the European economy and the latest Non-Farm Payrolls job numbers from the US.
The Eurozone economy is expected to flatline, while US jobs will show 200k additional jobs after a blowout of 350k last month. Continued substantial job numbers have reduced expectations for Fed rate cuts.
The recent weight of ECB policy rhetoric has seen rate cut timing shift more solidly towards June. A significant data release recently was the Eurozone PMI surveys for February. The February service sector PMI rose more than expected to 50.0 from 48.4 in January. That saw the services PMI exit contraction territory for the first time since July last year.
