Euro British Pound May Fall on Soft Eurozone Inflation Data
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Euro Pound May Fall if Soft Eurozone CPI Fuels ECB Easing Speculation Yen Falls Australian and Canadian Dollars Rise as Risk Appetite Recovers Gauge Trends and Spot Reversals in Leading Currencies with DailyFX SSI Eurozone CPI figures headline the economic calendar in European trade. The core year-on-year inflation rate expected to tick up to 1 percent. Yesterday’s disappointing set of analogous German price growth numbers warns a soft result may be in the cards however. Such an outcome may fuel bets on further expansion of ECB stimulus measures weighing on the Euro. It may likewise punish the British Pound considering further ECB easing stands to compound imported disinflation pressure in the UK delaying the onset of BOE rate hikes. The Australian and Canadian Dollars outperformed in overnight trade in a move that appeared corrective in the context of yesterday’s broad-based selloff across the risky asset spectrum. Appropriately enough the safety-linked Japanese Yen proved weakest on the session. S&P 500 futures are pointing firmly higher suggesting the corrective recovery is aiming to carry forward in the hours ahead. With that in mind we continue to see the path of least resistance as favoring risk aversion in the first part of 2016. Losing Money Trading Forex? This Might Be Why. Asia Session GMT CCY EVENT ACT EXP PREV 22:30 AUD Weekly Consumer Confidence Index (JAN 03) 116.3 - 115.4 23:50 JPY Monetary Base End of period (DEC) (¥) 356.1T - 343.7T 23:50 JPY Monetary Base (YoY) (DEC) 29.5% - 32.5% 23:50 JPY Loans & Discounts Corp (YoY) (NOV) 2.71% - 3.32% 05:00 JPY Vehicle Sales (YoY) (DEC) - - 0.3% European Session GMT CCY EVENT EXP PREV IMPACT 08:55 EUR German Unemployment Change (000's) (DEC) -8k -13k Medium 08:55 EUR German Unemployment Claims Rate SA (DEC) 6.3% 6.3% Medium 09:30 GBP Markit/CIPS UK Construction PMI (DEC) 56.0 55.3 Medium 10:00 EUR Eurozone CPI Estimate (YoY) (DEC) 0.3% 0.2% High 10:00 EUR Eurozone CPI Core (YoY) (DEC A) 1.0% 0.9% High Critical Levels CCY Supp 3 Supp 2 Supp 1 Pivot Point Res 1 Res 2 Res 3 EUR/USD 1.0523 1.0688 1.0759 1.0853 1.0924 1.1018 1.1183 GBP/USD 1.4426 1.4579 1.4647 1.4732 1.4800 1.4885 1.5038 --- Written by Ilya Spivak Currency Strategist for DailyFX.com To receive Ilya's analysis directly via email please SIGN UP HERE Contact and follow Ilya on Twitter: IlyaSpivak DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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