All eyes remain on the US Preliminary Manufacturing and Services (PMIs) data which is due to be released soon.

As far as economic data goes, the PMIs is the data to pay attention to, to get fresh hints on the status of global economic recovery. This data is expected to have a telling impact on risk sentiments and prices of commodities like gold.

GBPUSD bulls are eyeing July PMIs to better their position. Currently, the cable bottomed out from 1.3750 to 1.3764. The bulls are hopeful as they are seeing cautious optimism and upbeat UK fundamentals. July’s Manufacturing and Services PMI is bearing a forecast of 62.4, which is expected to directly affect the movement of the GBPUSD. The US PMIs will be the next deciding factor because GBP traders may react positively to surprises.

Gold traders are also awaiting the PMI data inside a bullish set up near $1800. The NZDUSD is perhaps the only major currency pair that may remain unaffected by US PMIs, as bulls are in command and are expected to maintain their control as the Reserve Bank of New Zealand (RBNZ) is well ahead of the curve.

This is the US Dollar Index chart showing the performance of the USD against other leading currencies. A bullish pinbar can be seen in the chart at level 92. The next resistance level is at 93.08. If this bullish trend continues even after the PMI data release, then value of other currencies may go down in the market.

Source: https://www.axiory.com/technical-analysis/all-eyes-on-pmis

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About Author

Mithun Girishan is the founder of MMM (Mithun’s Money Market), a consulting firm providing quality training programs in capital markets. He is an investor, trader, coach and a continuous learner. In addition, Mithun provides consultation and mentorship to many retail investors and company directors across the globe for investments, trading and hedging their wealth in stocks and futures. His passion lies in exploring new avenues in financial markets as well as learning theoretical and practical economics and its application in daily lives. This has exposed him to a wide range of markets spanning from equity, commodity, forex, futures to options.

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