|
Currencies
|
High
|
Low
|
Support
|
Resistance
|
|
GBP/EUR
|
1.1902
|
1.1837
|
1.1850
|
1.1940
|
|
GBP/USD
|
1.6077
|
1.5979
|
1.5970
|
1.6100
|
|
EUR/USD
|
1.3558
|
1.3426
|
1.3390
|
1.3590
|
Yesterday’s Market Movers
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EU’s Industrial Productions suffered from a slight drop of 0.1% in December, slightly better than a consensus of -0.2%. YoY increased by8% as expected. The Euro strengthened slightly (hitting 1.3550) on the back of the further inflationary evidence and traded in a range of 1.34-1.35 against US dollar.
Today’s Market Movers
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Germany GDP Q4 came in early morning which reported a slower pace of growth from previous quarter. The growth was 0.3% lower than Q3 hence the euro weakened slightly. EU GDP released at 10am will again prove to be volatile for the euro.
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UK Consumer Price Index (January) MoM and YoY are both expected to increase. Since the markets have been holding on for these figures since last week, we might see a big movement if it comes out as expected. Asian markets overnight saw Sterling move higher against the US dollar which shows that markets are concerned about UK inflation.
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EU GDP is set for release half hour after that. Both MoM and YoY are predicted to increase, however this is yet to materialize as German GDP may weigh it down. At the same time, EU trade balance will come out with a positive level. Depending on the outcome of trade balance we are likely to see a short term path for the single currency.
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In the U.S. Retail Sales are likely to post negative prospects. On the back of ‘weather-related decline’ according to the US Census Bureau which could be ‘understandable’ and ‘digested’ by the markets quickly.
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Net TIC Flows and Long-term TIC Flows, which indicates the in and out flows of financial resources in the U.S. are expected to come out better. This is an indication of economy recovery and may promote risk appetite. If it comes out as such we may see a short-term support for the US dollar.
