By FX Empire.com
The EUR/USD is likely to begin the week on Monday with high volatility, especially as we still await the outcome of the EU summit on Sunday October 23.
The uncertainty is high and the market is still optimistic the leaders will present a strong plan to contain the crisis, yet with the mixed signals from Germany and France and their request for a new summit on Wednesday and accordingly lack of clear comments from the summit will extend the volatility for the pair.
Therefore, the main focus remains the euro debt crisis and what the leaders will say. The market needs strong and comprehensive plans to continue the rally and otherwise a strong selloff will be seen across the board.
Germany will start at 07:30 with the advanced PMI Manufacturing for October which is expected to weaken to 50.0 from 50.3 while the Services PMI to recover slightly to 50.0 from 49.7.
The data start on Monday with the advanced estimate for the sectors performance in October at 08:00 GMT. The PMI Services is expected to fall to 48.5 from 48.8 and the PMI Manufacturing is expected to fall to 48.2 from 48.5 and accordingly the Composite PMI is likely to weaken as well from September’s 49.1.
The Industrial New Orders for August are due at 09:00 GMT and expected to drop by 0.1% after 2.1% slump the previous month.
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