Key Economic Data - Coming Up Today(All Times GMT+2)
The EURUSD has bounced back from yesterday’s 1.1754 lows, rising as high as 1.1815 and is now trading at 1.1805. The Euro crashed hard yesterday morning as panic in Paris spread to financial markets and the euro before the bulls took control and drove the euro as well as European stock markets higher. The hysteria was partly due to the fear that more attacks and destruction of human life could take place in France and other European nations. As this has not materialized so far the fear has partially subsided. The Dow Jones Industrial Average in the US rose 323 points and 1.84% climbing to 17908, the German Dax and French CAC stock indices posted strong gains with the DAX rising over 3% on the day. This morning European stock markets are trading slightly lower at around 0.15% below yesterday's closing prices. At their monthly meeting the Bank of England opted to keep interest rates on hold at 0.5% while maintaining the Asset Purchase Facility at 375B. The decision in concert with the BOE Rate Statement weighed on the Great Britain Pound with the GBPUSD falling to 1.50. In the US, Unemployment Claims rose to 294k which is the second highest unemployment total in the last 16 weeks. The terrorist attack in Paris, France on Wednesday which resulted in the death of 12 people has shocked Europe and the World could lead to further panic and may negatively affect financial markets if situation intensifies or there are new incidents.
Overnight the Chinese inflation rate slowed to the lowest level since 2009. The CPI rate of 1.4% marks a 6 year low and is a concern at a time when the global economy and the EU are growing anemically. This morning the Unemployment Rate in Switzerland grew from 3.1% to 3.2% and German Industrial Production disappointed forecasts of a 0.4% growth by shrinking by 0.1% last month. The data continued to worsen with the German Trade Balance falling from 20.6B trade surplus to 17.7B, short of expectations for 19.4B. French Industrial Production also showed declines of 0.3% worse than expected while the French Trade deficit narrowed to monthly 3.2B lower than last month’s 4.5B. Up next is Manufacturing and Trade balance data for the GBP. The big data today arrives a 13:30 GMT with US and Canadian Non-Farm Payrolls and Unemployment Rate. The employment data is likely to define the price-action in fx and commodity markets today barring any high profile unexpected news.
EURUSD Support areas include 1.1750, 1.1650, 1.1600, 1.1500, 1.1400, 1.1350. Resistance levels above are at 1.1975, 1.2000, 1.2200, 1.2300, 1.2380, 1.2402, 1.2444, 1.2500.
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