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
Oil - US Crude
Wall Street
More View more
Real Time News
  • Seasonal factors, oversupply issues and the outbreak of COVID-19 has seen the price of liquefied #naturalgas (LNG) fall to 22-year lows (1.519), with the situation exacerbated by ‘fuller-than-normal’ storage facilities. Get your market update here:https://t.co/VOqfkBQ4aR https://t.co/9gFVefFC3w
  • ⬇️Asia-Pacific Preview⬇️ - Wall Street buoyancy may spill over into Asia as investors shrug at domestic unrest - AUD and #NZD could rise with APAC stocks despite HK risks - #AUDUSD blew past key resistance and may now challenge multi-week swing-high https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/06/01/AUD-NZD-May-Rise-With-APAC-Stocks-Ahead-of-RBA-Rate-Decision.html
  • 🇰🇷 GDP Growth Rate YoY Final Actual: 1.4% Previous: 2.3% https://www.dailyfx.com/economic-calendar#2020-06-01
  • 🇰🇷 GDP Growth Rate QoQ Final Actual: -1.3% Previous: 1.3% https://www.dailyfx.com/economic-calendar#2020-06-01
  • 🇳🇿 Building Permits MoM Actual: -6.5% Previous: -21.7% https://www.dailyfx.com/economic-calendar#2020-06-01
  • Trumps says he will deploy military if cities, states won't act. Says he is dispatching 'thousands' of armed soldiers -BBG
  • Trump says he recommended governors deploy National Guard, told them to deploy guard to 'dominate' streets -BBG
  • US President Donald Trump: His first duty is to defend the country, people. Instances of violence 'acts of domestic terror'. Mobilizing civilian, military resources to stop rioting -BBG
  • 🇳🇿 Building Permits MoM Actual: -6.5% Previous: -21.3% https://www.dailyfx.com/economic-calendar#2020-06-01
  • Heads Up:🇰🇷 GDP Growth Rate YoY Final due at 23:00 GMT (15min) Previous: 2.3% https://www.dailyfx.com/economic-calendar#2020-06-01
Euro Unlikely to Find Strength in GDP Data as Inflation Stagnates

Euro Unlikely to Find Strength in GDP Data as Inflation Stagnates

2018-01-30 05:00:00
Ilya Spivak, Head Strategist, APAC

Talking Points:

  • Euro unlikely to find strength in GDP pickup as inflation stagnates
  • US Dollar continues to gain as State of the Union speech approaches
  • Yen up as APAC stocks decline, Pound stung by Brexit-related jitters

Eurozone GDP data headlines the data docket in European trading hours. The on-year growth rate is expected to edge up to 2.7 percent in the fourth quarter, the highest in almost seven years. A brisk pickup in performance last year nonetheless failed to push price growth toward the ECB’s target, a disappointment highlighted by the central bank’s President Mario Draghi just last week.

As if to make cement that point, German CPI figures are expected to show the headline year-on-year inflation rate remained at 1.7 percent in January, unchanged from the prior month and squarely in line with the average of last year’s choppy range. On balance, this suggests that – absent dramatically positive surprises – the Euro is unlikely to find lasting upside follow-through from the day’s releases.

The US Dollar continued to march higher in Asia Pacific trade, extending the prior session’s gains. The advance appear to reflect pre-positioning ahead of the upcoming State of the Union address from President Donald Trump. Speculation that he will unveil a large infrastructure-spending scheme have offered a boost to Fed rate hike bets, pulling the greenback upward by extension.

The Japanese Yen traded broadly higher as regional bourses followed Wall Street downward, boosting the perennially anti-risk currency. The British Pound continued to lose ground, extending yesterday’s Brexit-inspired losses. A verbal spat between the leading negotiators on both sides coupled with worries about the stability of the May government featured prominently in the newswires.

See our free guide to learn how you can use economic news in your FX trading strategy!

Asia Session

Euro Unlikely to Find Strength in GDP Data as Inflation Stagnates

European Session

Euro Unlikely to Find Strength in GDP Data as Inflation Stagnates

** All times listed in GMT. See the full DailyFX economic calendar here.

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

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

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


News & Analysis at your fingertips.