Yesterday data on PMI Manufacturing in the eurozone in August was 51.4 vs. 51.3. Nevertheless, the euro could not develop the initial impulse and closed the day moving down.
Today at 13:00 UTC+4 PPI in the eurozone in July, forecast 0.2% vs. 0.0% in June. At 18:00 UTC+4 data on ISM Manufacturing in the US in August is issued; 54.2 vs. 55.4 in the previous month. At the same time figures of Construction spending in July are expected; it is estimated to rise 0.3% vs. a 0.6% drop in June. If data is in line with the forecast, then the euro may rise (develop yesterday’s impulse of PMI Manufacturing) in terms of technical correction until Friday when data on the US Non-Farm Employment Change is published and the lower house of the US Congress votes on military intrusion to Syria. Thus, there is still time. Tomorrow data on Retail Sales in the eurozone in July is expected to grow (0.5% vs. -0.5%).
From the technical point of view, in order to continue growing the price has to overcome the testing level 1.3228, the first target is 1.3256. The second target is 1.3280. If the rate consolidates under the lilac trend line 1.3173, the way to 1.3100 opens.
