Daily Forex Outlook

Market Snapshot – Slow and Ranging Day

PMI Data from Eurozone Comes in Stronger

Today was a light day on the economic calendar but on such a day, the PMI data from the Eurozone was the dominating factor. The data came in stronger than expected and this raised the concern of tapering once again. While it was a matter of concern for the stock markets which saw the FTSE100 move lower, it was some good news for the euro currency which got a boost from the news and started moving up higher once again and the EURUSD pair moved through the 1.18 region back again. The stock markets continued to remain under pressure as the market now looks forward to the Jackson Hole meeting over the next couple of days and the happenings there is likely to dominate the trend for the short term.

Markets Await Jackson Hole

The markets are in a consolidation mode ahead of the meeting and we have not seen a breakout in either direction in any of the pair so far. This confirms our belief that the market is in a wait and watch mode for the meeting at Jackson Hole and once the meeting is done and dusted, we are likely to see a lot of volatility with the focus being on the euro as Draghi is expected to state some important policy related announcements following the meeting late on Friday.