Alpesh Patel's NewsletterPro - Euro and Pound retreat versus the Dollar, will today’s reports offer something else?

Share On Facebook
© Alpesh Patel

It was a calm trading day yesterday with no major moves in the currency pairs we monitor in our report. Even though we had events that could spur bigger swings, especially the central banks’ minutes, the releases revealed nothing new and as such market participants didn’t react in any way.

The Euro dropped against the Dollar but the Single currency recovered almost all of its losses during the overnight Asian session and is now again trading around the 1.3750 level. Today’s PMI releases have the potential to bring some momentum back into the pair and expectations are mixed. Depending on how the figures print we could see the Euro climbing towards 1.3800 or dropping to 1.3700 again.

The Pound continued falling against the Dollar even though the minutes’ release from the Bank of England offered positive comments for the economic outlook in the UK. The Unemployment Rate ticked marginally higher in a surprise reading and this development didn’t allow for the British currency to reach for higher ground. The Retail Sales figures expected tomorrow will offer the last piece of data for the Pound for this week while the British coin has been retreating since last Friday.

The US Dollar strengthened against the Euro and the Pound yesterday even though the Housing data released were a disappointment. The central bank’s minutes’ release was full of positive comments for the economy and it seems that the policymakers are committed in continuing their tapering agenda even though recent data have been discouraging. The inflation level and the Initial Jobless Claims numbers expected today can help the Dollar gain even more ground against the other majors in a week that has been pretty calm for all currencies up to now.

European Flash PMIs and inflation/unemployment data from the US

The Economic Calendar today holds a couple of important economic releases. Early in the morning the Flash PMIs will offer insight in how the Manufacturing and Services sectors are fairing in Germany and the Euro-zone. The report is a measure of confidence and gauges the business sentiment in these critical sectors and offers important data to consider.

Later in the day, the US Consumer Price Index will be released and we’d like to closely monitor the inflation levels in the US as it is a key measure for the Fed to decide whether its tapering schedule is helping or hurting the economy. Finally, the Initial Jobless Claims is an important precursor to the unemployment rate for this month and we also need to note down the released figures.

Economic Calendar

Time

Currency

Event

Importance

Forecast

Previous

8.30

EUR

German PMI Manufacturing

Medium

56.3

56.5

8.30

EUR

German PMI Services

Medium

53.4

53.1

9.00

EUR

Euro-zone PMI Manufacturing

Medium

54

54

9.00

EUR

Euro-zone PMI Services

Medium

51.9

51.6

13.30

USD

Consumer Price Index

High

1.6%

1.5%

13.30

USD

Initial Jobless Claims

Medium

334K

339K

 

 

TECHNICAL ANALYSIS & LEVELS

EUR/USD

GBP/USD

FTSE 100

Gold

This is the freely distributed Morning Brief section of the NewsletterPro report, a subscription-based product.
If you would like to receive the full version of the report along with specific trading suggestions, please subscribe by clicking here

Disclaimer Notice

Past performance is not indicative of future results. Trading forex, CFDs and equites carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts.

The information provided by InvestingBetter.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. InvestingBetter.com are merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite.

InvestingBetter.com and/or its owners will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on InvestingBetter.com. InvestingBetter.com does not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20191114 06:09:31