We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The US Dollar could rise against #ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data. Get your ASEAN currencies market update from @ddubrovskyFX here:https://t.co/LkEFJViPWY https://t.co/ZGFaQQ3Hr2
  • The #Euro is the big driver here for DXY as it is 57% of the index. It is rising now and trying to break above the March 27 high at 11147. Get your $EURUSD technical analysis from @PaulRobinsonFX here:https://t.co/6gt3F9LuGP https://t.co/73SaL5AeXD
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/EIC9YqfTec
  • Anybody else think that casting directors in movies are some of the most underrated people when it comes to giving a film/series credit?
  • No https://t.co/EoBltaP17k
  • Crude #oilprices may face heightened liquidation pressure as the cycle-sensitive #commodity finds itself under the pressure of resilient resistance and a vulnerable, multi-week rising channel. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/cGPX4qcOH1 https://t.co/0U4JMJVFuf
  • The @ecb will likely boost its Pandemic Emergency Purchase Program at Thursday’s meeting of its Governing Council; a move that could give the #Euro a lift. Get your currencies market update from @MartinSEssex here: https://t.co/I4PbmJNG1z https://t.co/hu6Ld1KdDB
  • $GBPUSD doesn’t have the cleanest set of technical indications, but #USD may give indications if it can break its trading range via the $DXY. Get your currencies market update from @PaulRobinsonFX here: https://t.co/PrC9wAaXvU https://t.co/vHYHflwqR3
  • The ongoing contraction in US production may keep #oilprices afloat in June as crude output falls to its lowest level since October 2018. Get your crude #oil market update from @DavidJSong https://t.co/jj1bMLX0DF https://t.co/O9NOqbfHkb
  • watching the #SpaceX launch🍿
Forex Analysis: Euro May Fall as German CPI Stokes ECB Rate Cut Bets

Forex Analysis: Euro May Fall as German CPI Stokes ECB Rate Cut Bets

2012-10-29 08:14:00
Ilya Spivak, Head Strategist, APAC
Share:

The Euro may find itself facing selling pressure as German CPI hits a three-month low, hinting the ECB could expand stimulus efforts as growth flounders.

Talking Points

  • Euro May Fall as Soft German CPI Drives ECB Rate Cut Expectations
  • US Dollar, Japanese Yen Higher on Haven Flows as Asian Stocks Decline

The preliminary set of October’s German CPI figures headlines an otherwise quiet European economic calendar. Expectations call for the annual inflation rate to decline to 1.9 percent, a three-month low. The result may weigh on the Euro as forex traders interpret easing price pressures as giving the ECB room for expanded stimulus measures to shore up the sagging currency bloc economy. Indeed, figures released last week showed manufacturing- and service-sector activity shrank at the fastest pace in 40 months in October.

The US Dollar and Japanese Yen advanced in overnight trade as Asian equities declined, boosting demand for the go-to haven currencies. The MSCI Asia Pacific regional benchmark equity slipped 0.2 percent. The newswires tipped a disappointing earnings report from Honda Motor Co – the world’s seventh-largest automaker – as the catalyst for the selloff. Honda reported profits and sales that trailed analysts’ estimates while slashing their full-year outlook citing reduced Chinese demand.

Anxiety about the impact of Hurricane Sandy, a large tropical storm making its way to the east coast of the United States, likely compounded selling pressure. US financial markets will be closed on Monday and may remain so into Tuesday because of the storm. Needless to say, the degree to which Sandy will disrupt economic activity over the weeks and months ahead remains uncertain. Indeed, the hurricane may prove to have a significant impact on overall risk appetite in an environment where markets continue to hope a firmer recovery in the US will help offset weakness in Europe and Asia.

Asia Session: What Happened

GMT

CCY

EVENT

ACT

EXP

PREV

23:50

JPY

Retail Trade (YoY) (SEP)

0.4%

1.0%

1.7% (R-)

23:50

JPY

Retail Trade s.a. (MoM) (SEP)

-3.6%

-1.5%

1.5%

23:50

JPY

Large Retailers' Sales (SEP)

-1.0%

-1.2%

-0.9%

0:01

GBP

Hometrack Housing Survey (MoM) (OCT)

-0.1%

-

-0.1%

0:01

GBP

Hometrack Housing Survey (YoY) (OCT)

-0.4%

-

-0.5%

0:01

GBP

Lloyds Business Barometer (OCT)

17

-

10

Euro Session: What to Expect

GMT

CCY

EVENT

EXP

PREV

IMPACT

9:30

GBP

Net Consumer Credit (SEP)

0.1B

-0.1B

Low

9:30

GBP

Net Lending Sec. on Dwellings (SEP)

0.5B

-0.3B

Low

9:30

GBP

Mortgage Approvals (SEP)

48.7K

47.7K

Medium

9:30

GBP

M4 Money Supply (YoY) (SEP)

-

-4.1%

Low

9:30

GBP

M4 Money Supply (MoM) (SEP)

0.3%

0.2%

Low

9:30

GBP

M4 Ex IOFCs 3M Annualized (SEP) (SEP)

5.9%

7.8%

Low

10:00

EUR

Italy to Sell €8B in 6-mo Bill Sale

-

-

Medium

13:00

EUR

German CPI (MoM) (OCT P)

0.0%

0.0%

High

13:00

EUR

German CPI (YoY) (OCT P)

1.9%

2.0%

High

13:00

EUR

German CPI - EU Harmonised (MoM) (OCT P)

0.0%

0.0%

Medium

13:00

EUR

German CPI - EU Harmonised (YoY) (OCT P)

2.0%

2.1%

Medium

Critical Levels

CCY

SUPPORT

RESISTANCE

EURUSD

1.2853

1.2968

GBPUSD

1.5989

1.6137

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, please CLICK HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.