Talking Points:
- Euro Eyeing ECB Comments to Inform QE Expansion Probability, Mechanics
- New Zealand Dollar Gains After Yields Jump at 2027 Government Bond Sale
- See Economic Releases Directly on Your Charts with the DailyFX News App
A quiet data docket through the end of the trading week is likely to keep traders focused on central bank commentary. The ECB is in the spotlight this time around, with remarks from President Mario Draghi of particular significance among the speakers scheduled to take to the wires.
Comments suggesting the central bankmay adopt a restrained approach – such as expanding the spectrum of QE-eligible assets – could push the Euro upward. Alternatively, hints at an increase in the size of monthly purchases or a cut in the deposit rate may weigh on the single currency.
The New Zealand Dollar outperformed in otherwise quiet overnight trade after yields went up at an auction of 2027 government bonds. The average yield was 3.61 percent, up from 3.28 percent at a sale of identical paper in mid-September. That may reflect expectations for a more supportive monetary policy outlook.
It ought to be noted that demand weakened at the today’s auction compared with that of two months ago, however, which may also help explain the jump in yields. The bid-to-cover ratio declined from to 1.805 from 2.185 previously.
Losing Money Trading Forex? This Might Be Why.
Asia Session
| GMT | CCY | EVENT | ACT | EXP | PREV |
|---|---|---|---|---|---|
| 02:00 | CNY | Conf Board Leading Index (MoM) (OCT) | 0.6% | - | 1.6% |
| 02:00 | NZD | Credit Card Spending (MoM) (OCT) | 1.5% | - | -1.9% |
| 02:00 | NZD | Credit Card Spending (YoY) (OCT) | 7.8% | - | 7.3% |
| 07:00 | JPY | Convenience Store Sales (YoY) (OCT) | - | 1.3% |
European Session
| GMT | CCY | EVENT | EXP | PREV | IMPACT |
|---|---|---|---|---|---|
| 07:00 | EUR | German PPI (MoM) (OCT) | -0.2% | -0.4% | Medium |
| 07:00 | EUR | German PPI (YoY) (OCT) | -2.0% | -2.1% | Medium |
| 08:00 | EUR | ECB's Draghi Speaks at Euro Finance Week | - | - | High |
| 08:15 | EUR | ECB's Coeure Speaks in Frankfurt | - | - | Medium |
| 09:30 | GBP | Public Finances (PSNCR) (OCT) | - | 17.9B | Low |
| 09:30 | GBP | Central Government NCR (OCT) | - | 21.5B | Low |
| 09:30 | GBP | Public Sector Net Borrowing (OCT) | 5.3B | 8.6B | Low |
| 09:30 | GBP | PSNB ex Banking Groups (OCT) | 6.0B | 9.4B | Low |
| 10:00 | EUR | ECB's Praet Speaks in Frankfurt | - | - | Medium |
| 13:00 | EUR | ECB's Constancio Speaks in Frankfurt | - | - | Medium |
Critical Levels
| CCY | Supp 3 | Supp 2 | Supp 1 | Pivot Point | Res 1 | Res 2 | Res 3 |
|---|---|---|---|---|---|---|---|
| EURUSD | 1.0504 | 1.0611 | 1.0672 | 1.0718 | 1.0779 | 1.0825 | 1.0932 |
| GBPUSD | 1.5069 | 1.5177 | 1.5234 | 1.5285 | 1.5342 | 1.5393 | 1.5501 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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