Europe is “disappointing”, we trade with oscillators

17 Dis 2019

Monday turned out to be a relatively calm day for the foreign exchange market. The euro and the pound could not reach Friday's peaks, due to the weak macroeconomic statistics.

For example, in Germany, the PMI in the manufacturing sector fell to its lowest level in the last couple of months and amounted to 43.4. This confirms that the largest eurozone economy is experiencing serious problems. Recall, any index value below 50 means that activity in the manufacturing sector is declining.

Germany is not an exception. Weak data came from both France and the UK. According to PMI, manufacturing activity in Britain is at its lowest level over the last 7 years. The PMI in the manufacturing sector in the UK came out at 47.4 pips (analysts expected 49.2).

In general, the lack of growth of the euro and the pound against the background of such data is quite logical.

On the other hand, this is not a reason to refuse to buy EURUSD and GBPUSD. All we need is statistics on industrial production in the United States come out weak. Well, for the pound it would be nice if the data on the labour market did not disappoint.

In general, today we are not expecting any revelations and strong directional movements. In our opinion, the best trading tactics for today is oscillatory trading. So we trade with RSI or Stochastic or you can choose another one.

Once again, we draw attention on extremely attractive positions for sales of the Russian ruble.