Forex Market: EUR/MXN daily forecast

During Friday’s trading session EUR/MXN traded within the range of 17.649-17.755 and closed at 17.665.

At 7:53 GMT today EUR/MXN was losing 0.1% for the day to trade at 17.648. The pair touched a daily low at 17.636 at 00:15 GMT.

Fundamental view

Euro zone

The preliminary reading of Germany’s manufacturing PMI probably advanced to 52.5 in June, from a final reading of 52.3 in the previous month. The official reading is to be released at 7:30 GMT.

At the same time, the preliminary manufacturing (PMI) in the Euro zone probably remained unchanged at 52.2 this month, matching Mays final reading, according to the median forecast by experts.

The index is based on a monthly survey, which includes carefully selected companies that are representative of the state of the private sector in the economy and track the changes in production, new orders, market share, employment and prices in the manufacturing sector. The PMI is the first economic indicator for each month, providing information on the changing economic conditions, significantly earlier than the official state statistics. It is presented as a scale from 1 to 100. Readings above 50 are connected with a positive outlook for economic growth. Conversely, values ​​below 50 indicate a less optimistic forecast. This is a preliminary value of the indicator.

The research group Markit Economics will release the official figures at 8:00 GMT.

In addition, the preliminary reading of Germany’s Services PMI in June probably slowed down to 55.7 this month, from 56.0 in May. The official reading is to be released at 7:30 GMT.

The preliminary reading of Euro zone’s Services PMI probably improved to 53.3 in June, from 53.2 in the preceding month. Markit Economics will report the official value at 8:00 GMT.

In case market expectations are exceeded, this will boost demand for the single currency.

Mexico

The Mexican unemployment rate probably fell to 4.8 in May, from 4.86% in the previous month.

According to the classification of the nations statistical office, Instituto Nacional de Estadística y Geografía (INEGI), a person is considered employed if he/she is older than 14 years and have been working at least six hours a week, regardless of the occupation. The country has a population of about 113 million people, of whom almost 50% (over 52 million people) live in poverty, according to the latest (2012) census.

Instituto Nacional de Estadística y Geografía is scheduled to release an official report at 13:00 GMT. In case the unemployment rate falls more than expected, this would boost pesos demand.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/MXN manages to breach the first resistance level at 17.730, it will probably continue up to test 17.795. In case the second key resistance is broken, the pair will probably attempt to advance to 17.836.

If EUR/MXN manages to breach the first key support at 17.624, it will probably continue to slide and test 17.584. With this second key support broken, the movement to the downside will probably continue to 17.519.