EUR/CAD Appears Tentative amid Declining Canadian Manufacturing Sales Data

Canada – Manufacturing Sales

Today, at GMT 1:30 p.m., the Statistics Canada released the month-over-month manufacturing sales data, which measures the changes in the total value of sales made by Canadian manufacturers over the past month.

Since changes in manufacturing sales affect the manufacturers’ future decisions regarding hiring, corporate spending, and overall investment climate in the country, binary options traders consider the manufacturing sales data to be a leading indicator of the Canadian economy.

In October, the Canadian manufacturing sales figure decreased by 0.6% and the forecast for November was set at an increase of 0.3%. However, the actual figure came out at a negative 1.5%.

Eurozone – German ZEW Economic Sentiment

Tomorrow, at GMT 10:00 a.m., the Zentrum fur Europaische Wirtschaftsforschung (ZEW) will release its German economic sentiment index, which measures the level of a diffusion index based on surveying 275 German institutional investors and market analysts.

Since the professional investment community, investors and analysts have the latest data; their reflection about the economy tends to be the most accurate. Therefore, binary options investors consider the ZEW’s German economic sentiment index to be a leading indicator of the entire Eurozone economy. This is because the German economy is one the most important driving forces behind the Euro currency.

Last month, the ZEW German economic sentiment came out at 1.9, and this month the forecast is set at a rather high level, at 6.7.

Trade Recommendation for the EUR/CAD

EURCADDaily

Although the Canadian economy has not been performing exceptionally well amid low energy prices, the continuous decline in economic sentiment in Germany has pushed the EUR/CAD down around 1,400 pips over the last three months.

As the Canadian manufacturing sales declined by another 1.5% over the past month, the EUR/CAD may start a retracement towards the downtrend line. However, if the German ZEW economic sentiment comes lower than expected it would likely have a higher impact on the EUR/CAD price and the downtrend may continue.

Currently, the EUR/CAD price is ranging between the 1.1415 and 1.4390. If the price penetrates below the support or above the resistance level, it would present traders with an opportunity to place either a PUT or CALL order, respectively.

Under the circumstances, it would be recommended that traders consider placing a PUT order for the EUR/CAD with their binary options brokers, once the price closes below the 1.1415 level. On the other hand, if the price closes above the 1.4390 level, it would be recommended that traders consider placing a CALL order instead.

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