According to a report released by S&P Global on the 23rd, affected by high inflation, the initial value of the euro zone’s manufacturing purchasing managers’ index in August was 49.7, a 26-month low. In addition, the initial value of the euro zone’s services purchasing managers’ index in August was 50.2, a 17-month low. The report pointed out that the manufacturing sector in the euro zone continued to weaken, which was superimposed on the contraction of the service sector, while high inflation and rising interest rates were putting increasing pressure on the demand side. Moreover, the prospect of supply disruptions to the Nord Stream No. 1 pipeline has made investors nervous, deepening investors’ concerns about the prospects for economic development in Europe. However, in the overnight foreign exchange market, the euro against the US dollar fluctuated upwards, the daily line closed up slightly, and the current exchange rate was trading around 0.9960. In addition to short-covering and technical buying near the 0.9900 mark, which provided some support for the exchange rate, the US dollar index weakened after the weak economic data cooled the Fed’s expectation of a sharp interest rate hike, which was the main reason for the euro’s rebound.
Today’s recommended trading strategy:
- Europe and the United States: bullish on dips. Reference resistance level: 1.0000/1.0023; support level: 0.9972/0.9955
2, the United States and Japan: shock finishing. Reference resistance level: 136.93/137.27; support level: 136.57/136.33
- GBPUSD: Shock rebound. Reference resistance level: 1.1828/1.1856; support level: 1.1802/1.1773
- Australia and the United States: bullish on dips. Reference resistance level: 0.6956/0.6972; support level: 0.6937/0.6926
- Gold: Bullish on dips. Reference resistance level: 1758.9/1765.5; support level: 1754.2/1749.4
Today’s key figures:
14:00 Germany’s second quarter GDP quarterly revised value (%)
16:00 Germany August IFO business climate index
18:00 UK August CBI retail sales difference
19:00 Canada August CFIB Business Barometer
20:30 U.S. second-quarter real GDP annualized quarterly revised value (%)
20:30 US second quarter core PCE price index annualized quarterly revised value (%)
20:30 The number of people who continued to apply for unemployment benefits in the United States for the week ended August 20 (10,000)