FX.co ★ The beginning of the week promises to be calm

Positive fundamental data on the eurozone economy and weak US statistics have placed pressure on the US dollar that resulted in a decline during the trading session on Friday against the European currency.

This week, traders will closely monitor the data on unsecured consumer lending in the United Kingdom. The report will be released on Wednesday. Also, the important data on November 2017 purchasing managers' index (PMI) for the manufacturing sector of the eurozone will be published on Friday. Economists expect an increase in the activity compared to the previous month, which could lead to the growth of the European currency. Today, there are no any important data expected to be released.

The pressure on the US dollar showed that data in the US private sector activity grew at a slower pace for November this year. This is due to the increase in investment as logistics problems increased as well.

According to the IHS Markit report, the preliminary composite purchasing managers index for the US private sector in November 2017 came in at 54.6 points against 55.2 points in October. Take note that the index values above 50 indicate an increase in activity.

The preliminary index of supply managers for the US manufacturing sector in November fell to 53.8 points from 54.6 points in October. Economists had expected the index to gain 54.2 points. The preliminary index of supply managers for the US services sector dropped to 54.7 points against 55.3 in October. Economists had expected the index to obtain 55.5 points.

The data for the deployment results in France had a slight pressure on the euro in the afternoon.

According to the report of the French Ministry of Labor, the number of unemployed categories in October this year increased by 0.2% to 3,483,600. Despite the economic recovery in France, which has been observed since the beginning of the third quarter of this year, the labor market continues to show weak results. The unemployment rate in France in the third quarter rose to 9.7% against 9.5% in the second quarter.

As for the technical picture of the EUR / USD currency pair, a breakthrough of the significant resistance at 1.1940 limits in risky assets will allow an expectation for renewal of the annual highs around 1.1980 and 1.2025 in the short term. If the pressure on the euro increases at the beginning of the week, the increase on Friday will be more speculative. Hence, it is possible to expect the correction in EURUSD to stop in the areas of 1.1880 and 1.1840. Larger support levels are seen at 1.1800 and 1.1700.

* The presented market analysis is informative and does not constitute a guide to the transaction.