Euro unchanged despite positive German retail sales data

<p>A cautious start to the week, with very little movement so far. Australia posted new home sales at a near three-year high overnight but this hasn’t […]</p>

A cautious start to the week, with very little movement so far. Australia posted new home sales at a near three-year high overnight but this hasn’t given the Aussie much lift so far as it slipped down after nearly breaking 0.9300 last week.

The Ukraine crisis is still an on-going battle, with the US holding talks with Russia but reports of a deadlock after ‘frank’ talks.

German retail sales were released this morning and came in much better than expected at 1.3%; the markets were expecting -0.3%. This failed to impress, however, and the euro has hardly moved. We seem to be at a standstill until the release of eurozone Flash CPI, expected to come in at 0.6%. This will be key today with the ECB suggesting that there is no risk of deflation. But the markets should be ready to act and negative rates are still a possibility. This data will help us to see which way the euro is heading.

This afternoon Canadian GDP data will be released, expected 0.4%, and Chicago PMI from the US, expected at 59.2.

Today we will also hear from Janet Yellen. The market will be listening for news of how the tapering is working for the US economy as data has been affected by the weather, clouding judgement on the actual recovery.

BoE’s Mark Carney will also hit the wires late into the evening session. More of the same as the market looks to hear of rate rise predictions.

 

EUR/USD

Supports 1.3740 1.3705 1.3680 | Resistance 1.3775 1.3800 1.3875

 

USD/JPY

Supports 102.60 102.40 101.75 | Resistance 103 103.25 103.75

 



GBP/USD

Supports 1.6615 1.6565 1.6480 | Resistance 1.6675 1.6720 1.6750

 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.