German CPI the key today

<p>The euro is in the headlines today, with a slight bounce yesterday and carrying on into the day on the back of next week’s ECB action. With […]</p>

The euro is in the headlines today, with a slight bounce yesterday and carrying on into the day on the back of next week’s ECB action. With the EU inflation report out tomorrow, this could change the mind of the markets, however.

Today we have some significant data from Germany in the form of unemployment change, expected at -6k from -12k previously. Also German CPI numbers will be released, with most expecting a drop to 0.0% from 0.3%. This will cause some pain for the euro if it comes out as expected.

The M3 money supply will also be released and this is a good indicator for CPI in the eurozone as it shows money in circulation. The figures are expected to be the same as last month at 1.5%.

The US is set for some decent data releases today, helping it to keep its charge against most major pairs. The preliminary GDP is due up and is expected to have slightly dropped to 3.9% from 4%. This will be followed by unemployment claims, expected to be pretty much the same as last at 298k. To finish off the action paced day, pending home sale are expected at 0.6% – a rise from the previous -1.1%.

 

EUR/USD

Supports 1.3159 1.3127 1.3102 | Resistance 1.3216 1.3242 1.3274

 

USD/JPY

Supports 103.71 103.55 103.33  | Resistance 104.09 104.32 104.48

 



GBP/USD

Supports 1.6538 1.6503 1.6470  | Resistance 1.6607 1.6641 1.6676

 

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.