FOREX NEWS: GERMAN INFLATION NUMBERS MAY PUT AN END TO RANGING MOVEMENT
EUR/USD
Forex News: The US Dollar continued to weaken yesterday against its major counterparts and the Euro was no exception; after an unsuccessful attempt to break resistance, price moved south to touch 1.3585 support but finished the day above it.
Technical Outlook
The pair is still ranging, without choosing a direction and this gives greater importance to the oversold condition of the Relative Strength Index and to the support located at 1.3585. We anticipate a bounce higher and a move back above the uptrend line but today’s important financial data will be the determining factor.
Fundamental Outlook
The main event of the day is the German Consumer Price Index which is released at 12:00 pm GMT and anticipated to change from the previous -0.1% to 0.2%, a fact which would be beneficial for the Euro as German inflation accounts for a big part of European inflation.
GBP/USD
Mark Carney’s speech regarding the Financial Stability Report was perceived as hawkish by market participants and the pair climbed yesterday above 1.7000.
Technical Outlook
At the moment the pair looks like it’s making an attempt to touch 1.7063 once again. The Pound was strengthened by more speculation about a rate hike which may come before the end of the year and the greenback is weakened by a worse than expected GDP so things look bullish and we anticipate a touch of the mentioned level. First support is located at 1.6996 (1.7000), followed by 1.6920.
Fundamental Outlook
United Kingdom’s Final version of the Gross Domestic Product will be announced today at 8:30 am GMT. Although the Final version is the last and tends to have a milder impact on price action compared to the Advance version, we can still expect sharp moves at the time of the release, especially if the actual figure will differ from analysts’ prediction of 0.8%. Since this is the main gauge of an economy’s performance, higher values usually strengthen the Pound and the opposite is true for lower numbers.
We hope you had a profitable trading week and we wish you a relaxing weekend.
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