Stronger than expected GDP data from Germany
City Index August 14, 2012 1:00 PM
<p> EUR/USD Range: 1.2250 – 1.2500 Support: 1.2275 Resistance: 1.2375-1.2380 Euro was in demand during the New York and Asian sessions although ranges remain broadly […]</p>
Range: 1.2250 – 1.2500
Euro was in demand during the New York and Asian sessions although ranges remain broadly intact. It seemed more a case of no bad news, than any good news. Although the euro’s strength will be tested today with various releases due from Europe throughout the morning. German GDP data exceeded forecasts at 0.3%, down 0.2% from the previous quarter. Later on we’ll be expecting inflationary data from the UK, as well as economic sentiment and industrial production from Europe, both of which could prove to be fairly influential figures. Analysts are expecting a contraction of 0.2% quarter-on-quarter in eurozone GDP as well as a fall in industrial production of 0.5% in June.
Range: 1.5550 – 1.5770
Rallies in cable yesterday were met with decent supply restricting the pair to a 60-pip range. Even so, the dips remained shallow so we may see the pair test the highs once again today. Inflation data will be released at 9.30am and the expectation is for CPI to remain unchanged; a marginal increase in RPI to 2.9% from 2.8%.
Range: 77.65 – 79.90
Bank of Japan’s Monetary Policy Meeting minutes were released last night, showing policy markets are considering steps to boost the economy. The focus remained on eurozone woes, and the concern for slowing overseas growth. According to the minutes, “members shared the view that uncertainty over the global economy remains high.” In conclusion, the BoJ kept monetary policy steady. Providing that domestic demand continues to offset weak external demand, the Japanese economy is headed for a slow but steady recovery.
StoneX Financial Ltd (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.