The euro dollar forex trading forecast for EURUSD today 07/02/2019
On the one hand, the forex traders in the EUR / USD pair, you can expect a decrease in the euro quotations against the background of sales of gold, as the euro has a strong correlation with the precious metal. Gold is very much increased in price in June on concerns about a trade war the United States and China, and after a positive G-20 summit, where Washington and Beijing announced the armistice, investors started to shut down the "Long" in gold. Gold this week may demonstrate the correction to $ 1370 / oz, which is negative for the euro. On the other hand, weak data on business activity in the US manufacturing in June may again cause the US dollar sell-off. ISM Manufacturing PMI value was 51.7% versus 60.2% a year earlier. For June is traditionally characterized by a high value of PMI - in the range of 54-58%. Now, we got a very weak report. Last time such weak figures observed in June 2012. Meaning ISM Manufacturing Prices 47.9% - index fell below the 50% level for the first time in four months. This factor indicates a decline in inflation, which is another argument for the Fed to lower interest rates on 31 July.
EUR / USD recommendation: flat 1.1260 -1.1340